Carnage,
The small print shows that lufthy didn't have to buy bmi at all in the end, so they must have paid a price they think its worth.
Sir Michael wasn't prepared to invest in the long term, as he won't be around. Instead bmi have been simply polishing the gold until now. sadly the dire situation the industry is currently in, has allowed Lufthy to successfuly negotiate him down.
It is fact that bmi operate cheaper than virgin and much cheaper than BA.
It has 6 times as many slots as VS and 1/4 of those of BA.
It has very few bilaterals holding it back.
With the correct hardware and Lufthy synergies, systems and investment their slots can cherry pick the routes, and undercut all incumbent operators. The fact that for the past 10 years Lufthansa have pubicly stated its ambition to own bmi (only after Sir Michael's call did they change) must mean it's always been part of theirs (and stars) long term strategy.
This example aside, we are entering uncharted territory for the aviation industry world-wise. Only those airlines with deep pockets, realistic cost bases and strong partners can survive.