Lufthansa hints on BMI purchase
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Lufthansa hints on BMI purchase
http://business.timesonline.co.uk/to...cle3998861.ece
THE chief executive of Lufthansa has given the clearest indication yet of the German airline’s interest in buying BMI British Midland, the second-largest carrier at Heathrow.
Wolfgang Mayrhuber confirmed that Lufthansa held an option that allowed it to take control of the British airline, and that a price for the deal had been agreed at the time the arrangement was struck.
Mayrhuber would not say Lufthansa would definitely exercise its option, but said: “London is a strong market and we have a strong position there. Heathrow is a desirable place to fly to and we will do what makes commercial sense for us there.”
Lufthansa’s option agreement dates back eight years to when the German carrier took a 20% stake in BMI. Senior aviation-industry sources said the price Lufthansa would have to pay to take control under the original deal was about £440m.
Wolfgang Mayrhuber confirmed that Lufthansa held an option that allowed it to take control of the British airline, and that a price for the deal had been agreed at the time the arrangement was struck.
Mayrhuber would not say Lufthansa would definitely exercise its option, but said: “London is a strong market and we have a strong position there. Heathrow is a desirable place to fly to and we will do what makes commercial sense for us there.”
Lufthansa’s option agreement dates back eight years to when the German carrier took a 20% stake in BMI. Senior aviation-industry sources said the price Lufthansa would have to pay to take control under the original deal was about £440m.
