BMI Sale to IAG Challenged

Virgin Boss Fulfils Promise to Challenge EU Ruling to Allow BA to Buy BMI From Lufthansa

Yet another EU edict  (EUDICT?) regarding aviation is being challenged by Sir Richard Branson as he promised to do if the sale by Lufthansa of BMI to IAG was allowed.   The other is the challenge to the EU ETS being mounted by the US, India China and others about their carriers being included  unilaterally in the ETS which is likely to cost carriers using EU airspace a combined €1.4b annually IF they can be persuaded to pay up in 2013 when the first payments under the scheme are due to be paid.

It will be interesting to see if Virgin’s argument that the IAG/BMI deal is anticompetitive will suffice to overthrow the current ruling.  However, it’s doubtful if any of the 1200 BMI workers whose jobs are threatened by the IAG take-over will feel much relief at the temporary stay of execution.  Lufthansa is on record as saying that if the deal is not allowed they could simply close down BMI.   Whilst that would free up BMI’s slots to competitive bids at Heathrow and elsewhere – the workforce would clearly suffer even more than under the IAG purchase.  It is interesting to speculate whether Virgin’s challenge is a ploy to free up all BMI’s slots to an open to all auction OR could it be a cunning plan to set the scene to eventually snatch BMI away from IAG?