16 March is bmi day for British Airways

See BRANSON ON THE WARPATH

British Airways should know by Friday 16 March whether owner IAG has gained approval with its bid for bmi, the Lufthansa-owned former British Midland Airways.  The European Competition Commission has posted the date on its website.

A bmi takeover would boost IAG's share of runway slots at Heathrow Airport to about 52% from the current 43%, still less than the dominance of some continental airlines at their home airport.  From a BA point of view it would allow for route consolidation, the slots realised opening up possibilities for more frequencies and new destinations, particularly to China and India.  Against the move is the loss of competition on UK regional routes, with the potential to push up fares and limit transfer traffic to Virgin Atlantic and other carriers not commercially friendly to British Airways.  bmi’s pulling of the Glasgow route is sited as an example.

Last year, EU Competition Commissioner Joaquin Almunia blocked the merger of Greece's Aegean Airlines and Olympic.

If British Airways succeeds in its bid BAA will have to reconsider the long term tenancy of airlines in the new Terminal 2.  BA will clearly want to move any solo bmi routes it acquires either into T3 or T5. www.baa.com

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