BMI Regional sale creates Scotland’s largest airline: Herald Scotland

Posted: May 11, 2012 in Airlines, Aviation & Airports (General News), Glasgow
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[Herald Scotland] The future of Aberdeen based BMI Regional has been secured after British Airways’ parent company agreed to sell it to a consortium of local businessmen for £8 million, creating Scotland’s biggest indigenous airline.

IAG chief executive Willie Walsh said: "This deal provides a future for BMI Regional."

IAG chief executive Willie Walsh said: “This deal provides a future for BMI Regional.” Photo: Wikipedia

 The cash deal with Sector Aviation Holdings (SAH) safeguards flights from 14 destinations in the UK and Europe, together with around 330 jobs and is now awaiting approval by the Civil Aviation Authority.

It follows the recent sale of the loss-making BMI by Lufthansa to International Airlines Group (IAG) for £807m, a deal that left the future of smaller subsidiaries BMI Regional and BMI Baby in doubt.

The SAH consortium was led by Ian Woodley, who founded Business Air before it became BMI Regional after being sold to British Midland in 1996, and funded by Stephen and Peter Bond, part of the family behind Bond Offshore Helicopters who are also investors in Scottish airline Loganair.

Ownership is expected to transfer to SAH within two weeks.

IAG chief executive Willie Walsh said: “This deal provides a future for BMI Regional.”

A spokesman for SAH said it would initially operate under the BMI Regional banner but that further plans were yet to be announced. He said there were no plans for any job cuts.

BMI Regional operates a fleet of 18 Embraer jets, each with a seating capacity of between 40 and 50, and caters mostly to the business market. Rival Loganair also operates 18 aircraft but with a smaller capacity.

The Granite consortium, as they had been known, were said to be close to a deal with Lufthansa last year to purchase BMI Regional for between £20m and £25m, with plans to expand services offered to UK business passengers. But the deal faltered due to problems with……

Read the full story at Herald Scotland…..


Herald Scotland
Friday 11 May 2012


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