IAG is approved for BMI purchase

Published:  4 Apr at 9 AM

As reported by the BBC, the proprietor of British Airways, IAG, has been approved for the business takeover of BMI from present owners Lufthansa.

European authorities confirmed the deal after IAG decided to relinquish landing spots at Heathrow airport. IAG, which owns Iberia as well, and BMI would have together controlled 53% of landing spots at Britain's largest airport.

Virgin pushed regulators to block the move, saying it distorted competition within the aviation market. IAG reached an agreement worth £172.5 million ($273m) to purchase BMI last year.

The European Commission said the decision depended on the relinquishment of 14 spots at London's Heathrow in order to let other airlines have more access. It was also conditional on IAG promising to transport connecting passengers to aid the long list of budget airlines out from London Heathrow.

Joaquin Almunia, the EU's Competition Commissioner, said the commitments included an appropriate amount of very desirable slots at London Heathrow, along with far-reaching feeder arrangements for connecting passengers.

IAG's CEO Willie Walsh called it “great news” for the UK. Over time, IAG will launch more long-haul routes connecting to key trading countries which are not currently served from Heathrow, he said. The deal is positive for British business and British consumers, he added.