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.

 

Featured
Exam coaching workshops

AQA BUSS1/BUSS2 Combined Exam Coaching & Revision Workshops

These intensive one-day exam coaching & revision workshops are designed to help AS Business students maximise their performance in the BUSS1 & BUSS2 exams later this term. Through a series of intensive sessions, we focus on and build techniques that enable students to meet the assessment objectives. The main focus on each session is BUSS2, but we'll also dip into key BUSS1 topics and develop effective exam technique proven to work for both exams.

Learn more ›

Teaching & learning products

AQA BUSS3 Revision Guide

The leading quick revision guide for BUSS3. This 20 page full colour guide provides a concise overview on the key knowledge that students need to apply to the BUSS3 exam case study together with advice on exam technique.

£4.00

Edexcel GCSE Business Studies Unit 3 Worked Answers (2013-2014)

Fully worked A Grade answers to recent Edexcel GCSE Business Studies Unit 3 exam papers with detailed examiner commentary on how good technique scores top marks

£5.00