Lufthansa, BMI Discuss Structure of Future Joint Action

Business Materials 8 November 2008 11:34 (UTC +04:00)

Azerbaijan, Baku, 8 November/ Trend , corr A. Badalova/ "Lufthansa is discussing prospects of future joint action with Sir Michael Bishop after expansion of share of large German airway company in British BMI," Claudia Lange, Media Relations Spokesperson of Lufthansa said.

"Lufthansa and chairman of Board of Directors of BMI sir Michael Bishop are discussing the future structure and options with BMI," Lange said to Trend by e-mail.

Large German airway company Lufthansa will buy 50% of shares of BMI, second largest British airway company. The deal is part of the existing shareholders agreement of BMI dated 9 November 1999.

Lufthansa today already holds 30 per cent minus one share in BMI. The transaction costs 400 million euros. The share of German airway company will reach 80% after buying 50% minus one of shares of Sir Bishop. About 20% of shares of BMI are held by Scandinavian SAS.

Lufthansa expects the exercise to take place not before 12 January 2009. It is subject to anti-trust approval and regulatory requirements, Lange said. The cost of the deal is not reported.

As a result of a deal, Lufthansa will be second only to the largest British Airways for the number of flights carried out from Heathrow airport of London. At present, BMI carries out 50 domestic and international flights including London-Moscow flight which the company carries out with the Russian Transaero.

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