There was always a danger of this, but I thought both IAG and DLH were savvy enough to avoid it.
The irony is that if the competition commissioners hold the deal up, Lufty pulling the plug will result in, well, less competition with a side salad of 3000 unemployed people.....
LUFTHANSA is considering shutting down its BMI British Midland subsidiary if the sale of the loss-making carrier is held up by Brussels.
The German airline agreed in December to sell BMI to International Airlines Group (IAG) for a maximum £172.5m, but the deal could be held up by a European competition investigation as last week Brussels rejected concessions offered by IAG, saying they were inadequate.
Lufthansa is desperate to offload BMI because it is a huge drain on its finances. The latest accounts reveal a £151m pre-tax loss for the British carrier last year. Lufthansa has set aside £108m to cover the deal, including the cost of taking on the pension scheme plus a dowry for IAG, owner of British Airways.
IAG wants BMI for its landing slots at Heathrow. A merger would boost its share of slots at the key hub from 44.8% to 53.5%.
Sources said that Lufthansa could pull the plug on the British carrier if Brussels decides on a protracted investigation. It is thought the Germans want to avoid the further losses that would accrue during an inquiry that could run for months.
A source said: “Both sides want to finish this deal. Of course, if you cannot see an end to it, that might be an option — to close it down.” Lufthansa declined to comment.