Lufthansa acquires BMI
30 October 2008
The merger and acquisition trend so common in the finance industry, has extended to the travel industry with German airline Lufthansa set to acquire the controlling stake in British Midland Airways, BMI.
Sir Michael Bishop will sell his 50 per cent share of BMI by exercising an option from his 1999 negotiations with Lufthansa which requires the German airline to purchase Bishop’s controlling share for £318 million.
Lufthansa will now operate the second largest number of flights out of Heathrow airport, just behind British Airways.
Lufthansa’s Vice President for Europe, Karsten Benz, told the BBC that BMI jobs were safe ‘for the time being’.
Lufthansa acquired Swiss Airlines and purchased a 45% stake in Brussels Airline earlier this year.
Lufthansa’s growing empire will rival the Air France – KLM conglomeration that dominates the European travel market.
In the United States, Delta Airlines’ acquisition of North West Airlines was approved yesterday by the Justice Department, making it the largest airline in the world, ahead of American Airlines.
For more information, please visit:
BBC News
http://news.bbc.co.uk/1/hi/business/7697261.stm
Times Online
http://business.timesonline.co.uk/
USA Today
http://www.usatoday.com/
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