By Vittorio Hernandez

London, England, United Kingdom

British Airways is interested in bidding for BMI, which is owned by Lufthansa and the second biggest carrier at Heathrow Airport.

The International Airlines Group, BA's and Iberia's parent company, wants the air carrier not for its routes but for its take off and landing rights at the gateway. BMI holds 11 percent of the airport's take off and landing slots with an estimated value of $1.15 billion (GBP 750 million).

BA accounts for 42 percent and Iberia 2 percent.

IAG Chief Executive Willie Walsh, according to reports, wants to bid for Portuguese airline TAP, not the whole of BMI, to battle the stiff competition from Middle Eastern airlines that are also seeking more presence in Heathrow.

Lufthansa purchased 20 percent of BMI in 1999. The German air carrier appointed ex-Scandinavian Airlines executive Vagn Ove Sorensen as BMI chairman with the main task of handling the sale of BMI Baby and BMI Regional.

BMI suspended daily flights between Glasgow and Heathrow at the end of March because of anticipated increase in domestic passenger charges at Heathrow. It was a losing route for BMI to the tune of $1.5 million (GBP 1 million) monthly.

The decision left BA as the only air carrier to service that route.

BMI reported a $157.50 (GBP 105 million) loss for the first six months of 2011.

 

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World - British Airways to Bid for BMI | Global Viewpoint