Half-Price Deal: Lufthansa can’t get rid of BMI Baby
International Airlines Group was originally expecting to close a deal of £172 million on April 20th, but two companies previously interested in BMI Baby have now backed down – signalling a far lower priced deal for IAG.
The two companies were ACL, a charter carrier from Dublin and German company - Intro Aviation.
IAG has previously negotiated a lower deal sum in event of this occurrence, with some experts suggesting an approximate £80 million cut from the original deal price.
Katherine Hill, spokeswoman for British Midland International, parent of BMI Baby stated:
Regarding bmibaby and bmi Regional, discussions with potential buyers continue.
Bloomberg’s BusinessWeek reported a statement from an analyst at Bloxham Stockbrokers in Dublin saying:
BMIbaby is not a very attractive asset. It’s getting flame-grilled at the moment because the market in northern England is incredibly competitive.