International Airlines Group (IAG) has completed the purchase of bmi from Lufthansa, but has been saddled with bmibaby and bmi regional.
Under the deal, Lufthansa had been trying to offload bmibaby and bmi regional before the deal went through, but has failed to do so.
In a statement this morning, British Airways’ parent IAG said under the terms of the purchase agreement, it will also acquire these businesses but with a "significant" price reduction.
Some analysts believe this could be as much as £80 million off the £172.5 million price.
The discount takes into account financial liabilities and losses that IAG is taking on.
IAG confirmed today that bmibaby and bmi regional are not part of its long term plans and will not be integrated into BA.
"IAG will pursue options to exit these businesses and more details will be provided in due course," said its statement.
"The costs associated with exiting these businesses, including the impact of operating them in the short term, are expected to be offset by the price reduction."
IAG said it will update investors about the bmi integration plan at its first quater results on May 11, 2012.
From today, bmi mainline flights will begin to be sold through BA as well as through bmi.
by Bev Fearis
