Published Thursday, 22 December 2011
A binding agreement has been reached by the International Airlines Group (IAG) - which owns British Airways and Spanish carrier Iberia - to buy BMI for £172.5m in a move that will boost its stranglehold at Heathrow airport.
IAG will acquire up to 56 additional taking off and landing slots at Britain's biggest airport once it acquires loss-making BMI from German operator Lufthansa.
Willie Walsh, British Airways CEO, said it would use its increased number of slots to launch new long-haul routes but would maintain the domestic network.
Stormont Enterprise Minister Arlene Foster has welcomed the news that the Belfast Heathrow route is to be retained.
She said: "The Belfast-Heathrow link is vital for business and tourism and I welcome today's confirmation from IAG Chief Executive Willie Walsh that the airline is to retain the route.
"This is good news for the many people who depend on direct and quick access to and from London. I am mindful that there are other issues which still require clarification and we will be keeping in close touch with IAG."
Regional Development Minister Danny Kennedy said: "Northern Ireland is uniquely dependent on high frequency and economic connections to international flights through the UK's key international hub at Heathrow.
The UUP MLA said: "I look forward to meeting with IAG early in the New Year to discuss the detail of today's announcement and how their plans will contribute to securing Northern Ireland's local and global connectivity."
On Thursday, Mr Walsh warned that BMI job losses were on the horizon as the new owner will restructure the business after the deal is completed.
Mr Walsh added that BMI's finances were "appalling."
BMI, which employs more than 3,600 staff and flies to Europe, Middle East and Africa and destinations within the UK, made a £153m pre-tax loss in the year to 2010.
It is understood that IAG hopes the deal will go through in the first three months of next year, subject to regulatory approval.
Mr Walsh said the deal was "good news for the UK" and said customers would benefit from new destinations and more convenient schedules.