Airline Changes Come Fast

By | Category: Travel rumblings

Developments have been announced quickly this morning.
Firstly the Icelandic backed Sterling Airways which linked Gatwick with Billund, Copengagen & Stockholm said that it would file for bankruptcy. Although they have looked for buyer, no company has come forward.
Unlike BMI ( who also own bmibaby) who have announced that they have been sold to Lufthansa. The Chairman of the company, Sir Michael Bishop, owned 50% of the company plus one share with Lufthansa owning 30% and SAS 20%. Now Lufthansa will have 80% and, more importantly, those lucrative slots at Heathrow that are so prized. Rumour had it that Virgin Atlantic wanted to buy BMI as well.
Lufthansa, who announced a big fall in profits recently, is getting quite aggressive. They have bought a stake in Brussels Airlines and were interested in Austrian Airlines which is also up for sale.
What happens now to bmibaby?
As a no-frills airline, will Lufthansa expand it, close it and let it operate in just the UK market.

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