LUFTHANSA is considering shutting down its BMI British Midland subsidiary if the sale of the loss-making carrier is held up by Brussels.
The German airline agreed in December to sell BMI to International Airlines Group (IAG) for a maximum £172.5m, but the deal could be held up by a European competition investigation as last week Brussels rejected concessions offered by IAG, saying they were inadequate.
Lufthansa is desperate to offload BMI because it is a huge drain on its finances. The latest accounts reveal a £151m pre-tax loss for the British carrier last year. Lufthansa has set aside £108m to cover the deal, including the cost of taking on the pension scheme plus a dowry for IAG, owner of British Airways.
IAG wants BMI for its landing slots at Heathrow. A merger would boost its share of slots at the key hub from 44.8% to 53.5%.
Sources said that Lufthansa could pull the plug on the British carrier if Brussels decides on a protracted investigation. It is thought the Germans want to avoid the further losses that would accrue during an inquiry that could run for months.
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A source said: “Both sides want to finish this deal. Of course, if you cannot see an end to it, that might be an option — to close it down.” Lufthansa declined to comment.