The UK airline, BMI has recently been purchased by the International Consolidated Airline Group from Deutsche Lufthansa and this is a move that is going to integrate BMI into the other British airline, British Airways.
The original deal was estimated to have a price tag of over £170 million. However, this price tag was set before the company decided to do away with its loss-making units; BMI regional and BMI baby. It is not known what the current price of the deal is, but as was expected that the price of the deal has been revised since these two loss-making branches were removed from the deal.
IAG have not issued a comment about the new figure but they have said that it was seriously reduced. It is expected that in the near future this new acquisition is going to be fully integrated into British Airways and it is going to consolidate all of the workers into one union. It is estimated that the integration could result in a loss of over 1000 jobs, which is a significant number of the total people employed at BMI.
The largest trade union in the UK, Union, has issued a strong statement of reaction to the news of the deal. They have particularly raised concerns over the fact that British Airways could be intending to sell BMI regional and BMI baby.
Part of the deal has been about securing more slots for British Airways at Heathrow airport. The airport is already running at full capacity, because it is the main hub for transatlantic flights that then transfer to different destinations in Europe. By going through with the deal more slots can be used by British Airways which can allow them to expand. In total IAG now have over 50 percent of all slots available at Heathrow