Bmi says it will decide between two potential buyers for budget airline bmibaby in the next few weeks.
The airline announced that it had two term sheets signed for the sale – one to an EU-based airline group, which would acquire 100% of the shares including aircraft, existing routes and employment of existing staff and one to a UK based company.
The statement said bmi plans to sign a definitive sale purchase agreement with one of the parties in the next few weeks.
It added: "The completion of the transaction would occur shortly after this, subject to receiving all the necessary approvals."
The bmibaby brand name would continue to be used for an interim period and bmibaby’s head office would remain in the East Midlands with the airline continuing to operate from its existing bases in the UK.
Bmi and the buyer have agreed not to disclose any financial aspects of the planned transaction.
The airline was believed to be close to a deal with German airline specialist Intro Aviation to buy bmibaby, see previous story.
Bmi, which is owned by Lufthansa but is being sold to British Airways’ parent IAG, is looking to sell its bmibaby and bmi regional units as part of its takeover.
A deal would effectively save the bmibaby brand, as IAG had indicated that it would close the unit if Lufthansa could not find a buyer.
