According to an AFP report, German airline Lufthansa earlier this week said that it will boost its stake in British carrier bmi to 80 per cent by giving control of the company and a large foothold in Europe's biggest airport. The deal makes Lufthansa the second biggest carrier at Heathrow, the busiest European hub, after British Airways.
Lufthansa said it was obliged to make an offer for the majority of bmi shares, but the German carrier said in a statement that this option was not expected before January 12, 2009. According to Britain's Press Association, Lufthansa was to be paying around USD 510 million for the 50 per cent stake. The increase from Lufthansa's previous 30 per cent holding in bmi, formerly known as British Midland, was the result of an option held by Michael Bishop, Chairman of bmi to sell his stake of 50 per cent plus one share to the German carrier.
Scandinavian Airlines (SAS) owns the remaining 20 per cent of bmi, which holds slots at London's Heathrow airport worth around USD 1.2 billion and runs lucrative trans-Atlantic flights. |