Etihad-BMI merger?
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UK-based airline, BMI, has declined to comment on newspaper speculation that it is in talks with UAE national carrier Etihad over a possible merger, according to the BBC. The Sunday Times reported that Etihad approached BMI earlier this summer with a view to a potential deal with would value the British carrier at GBP600 million (US$1.08 billion).
The Abu Dhabi airline has also reportedly spoken to Lufthansa, with owns a 30% stake in BMI. Lufthansa has the option to take complete control of BMI next year, but the newspaper understands it is ready to sell its stake for around GBP200 million (US$359 million).
The BBC reported Etihad as saying that it had held “a number of discussions with a variety of carriers” but had “no firm talks planned”.
Acquiring BMI would be a good strategic move for Etihad, as the UK carrier, formed from the old British Midland, currently owns 11% of the lucrative take-off and landing slots at Heathrow.
Etihad Chief Executive James Hogan is familiar with BMI’s operations, having been the carrier’s Chief Operating Officer between 1999 and 2002.
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