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*Arik, BA Imbroglio: Lufthansa Owns 100% of BMI, Investigations Reveals

By Lateef Lawal

Contrary to the claim in certain quarters that the British Midland was owned by British Airways and that it was the airline used as fronts to scuttle Arik's slot at London Heathrow Airport, it has been discovered that the claim is a fluke. It was also claimed that the slots in question were sold by BMI to Arik. BMI was also said to be one of the subsidiaries of BA. From investigations by NigerianAviationNews, as at this moment, Lufthansa initially owns 50% and later 100% of BMI which it bought in 2008 from the previous Chairman, Sir Michael Bishop who at the time owned 80%.

Lufthansa is just about selling British Midland (BMI) to International Airlines Group (IAG), which owns British Airways and Iberia. No details have yet been given of how much will be paid for the loss-making carrier. The airlines said they hoped to sign a purchase agreement "in the coming weeks" and complete the deal before April 2012. The sale still has to be cleared by regulators. BMI, which is based in Castle Donington in Leicestershire, operates flights to Europe, the Middle East and Africa. ( Continues below..... )

Photo Above: An Airborne Plane

The key issue for regulators will be the extra take-off and landing slots at Heathrow Airport that BMI owns. The acquisition would mean that IAG would have more than half of the landing slots at the UK's busiest airport. Virgin Atlantic, which said it had also made a bid for BMI, is likely to strongly oppose the deal. "British Airways' hold over Heathrow is already too dominant and we are very concerned - as the competition authorities should also be - that BA's purchase of BMI would be disastrous for consumer choice and competition," Virgin Atlantic said.

Geoff van Klaveren from Deutsche Bank said the deal would make a big difference for IAG. "It boosts their slots at Heathrow to 54% share from 45%. Given that no new runways are likely to be built in the South East of England in next 10 years, this is a crucial strategic move," he said. It decided to sell it as the carrier's losses widened. It reported a loss of 154m euros ($213m; £133m) for the first nine months of this year, hit by rising fuel costs and social unrest in some of its destinations in North Africa and the Middle East. ( Continues below..... )

Photo Above: A landing Arik Plane

BMI also has a no-frills subsidiary called BMIBaby and the Aberdeen-based BMI Regional. BMI announced on 28 October that it was in advanced talks to sell BMI Regional to a UK-based investor group that would continue to run it as an independent airline. British Midland Airways Limited (styled as bmi, British Midland International), is an airline based at Donington Hall in Castle Donington, England, United Kingdom, close to East Midlands Airport, and a fully owned subsidiary of Lufthansa.

The airline flies to destinations in Europe, the Middle East, Africa and Central Asia from its operational base at London Heathrow Airport, where it holds 11% of all take off and landing slots and operates over 2,000 flights a week. In January 2007, BMI bought British Mediterranean Airways which has enabled it to serve a wider range of mid-haul destinations. British Midland Airways Limited holds a United Kingdom Civil Aviation Authority Type A Operating Licence, permitting it to carry passengers, cargo and mail on aircraft with 20 or more seats.

The airline is currently ranked as a 3-star airline by Skytrax.

Lateef Lawal (NigerianAviationNews)

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