The future of the budget carrier bmibaby was uncertain yesterday after the owner of British Airways completed its deal to buy bmi and said it wants to exit the low-cost arm.
When International Airlines Group (IAG), which owns BA and Iberia, announced its acquisition of loss-making bmi from Lufthansa, it came with the proviso that the German airline either sell bmibaby and bmi Regional before completion, or give IAG a "significant reduction" on its £172.5m purchase price.
IAG said: "IAG will acquire these businesses and receive a significant price reduction.
"Bmibaby and bmi Regional are not part of IAG's long-term plans and will not be integrated into British Airways. IAG will pursue options to exit these businesses."
Closing bmibaby will cost about £60m. The carrier, together with bmi Regional, are thought to be losing about £82m a year.
IAG said all exit costs would be offset by its price reduction.Reuse content