International Airlines Group, IAG or BA/Iberia has secured EU approval for its purchase of BMI from Lufthansa. The purchase price is c. £172.5m. The quid quo pro is the insistence by the EU regulators that IAG gives up 14/56 of BMI’s slots at Heathrow.

Access to these slots is now up for auction.

The Economist’s Gulliver blog wondered if the deal was good for consumers, given the increase in market power as IAG’s total ownership of slots at the airport rises from 43% to 51%. Conversely, the deal has allowed some BMI staff to stay in employment, Lufthansa had threatened to shut down all the BMI routes, making all the staff redundant.

IAG are not losing traffic from the long haul transatlantic route, but will give up landing and take-off rights on some UK domestic and medium-haul European routes. It remains to be seen if Virgin appeals against the decision, or whether it buys some of the discarded BMI routes.

The UK’s Office of Fair Trading had received complaints about IAG’s acquisition of BMI, but declined to act at the beginning of March 2012, passing responsibility for approval to the EU’s Competition Court.

 

Job board

Teacher of Business and Economics

King Edward VII School, Sheffield

New

Join the tutor2u community

With a tutor2u account you can access extra features to support your teaching & learning.

Subscribe to the daily digest

Curate your own content

Track your training schedule

Manage your resource library

Receive job alerts

Join the community

Already joined? Sign in now ›

More From the Digital Store

Editable topic-by-topic PowerPoints explaining every topic for Units 3.1 - 3.6 of AQA A Level Business.

£100.00 (+VAT)

AQA A Level Business Year 1 (AS) Teacher PowerPoint Presentations

Michael McDonald (Mac) wants increase revenue. Should he increase his advertising or launch a new type of burger, the Magic Mac. He has decided to use a decision tree to...

£5.00 (+VAT)

Big Macs Decision

Comprehensive collection of key topic worksheets and case studies for the Year 2 teaching content of Edexcel A Level Business.

£75.00 (+VAT)

Edexcel A Level Business (Year 2) Lesson Worksheets and Case Studies

Recruitment

Advertise your vacancies with tutor2u

Much cheaper & more effective than TES or the Guardian. Reach the audience you really want to apply for your teaching vacancy by posting directly to our website and related social media audiences.

Find our more ›

Advertise your teaching jobs with tutor2u