IAG (International Airlines Group) (London and Madrid) and Lufthansa (Frankfurt) have reach an agreement in principal on the sale of British Midland Limited (BMI) (East Midlands) to IAG.
The sale and closing of the deal remain subject to conditions including a binding purchase agreement, further due diligence and regulatory clearances. It is envisaged that the purchase agreement will be signed in the coming weeks and the aim is for the transaction to be completed in the first quarter of 2012.
This is probably the end of BMI if the agreement is finalized.
BMI Slide Show: CLICK HERE
On the financial side, International Airlines Group today (November 4) presented Group results for the three and nine months ended September 30, 2011. In addition, IAG presented combined results for the nine months ended September 30, 2011 including Iberia’s first 21 days of January.
IAG period highlights on combined results:
· Third quarter operating profit of €363 million, before exceptional items (2010: €528 million)
· Operating profit for the nine months to September 30, 2011 of €451 million, before exceptional items (2010: €219 million)
· Profit before tax for the nine months of €355 million after exceptional items (2010: €63 million)
· Revenue for the nine months up 11.6 per cent to €12,263 million (2010: €10,986 million), including €146 million or 1.3 per cent of adverse currency translation
· Passenger unit revenue for the nine months up 4.1 per cent (6.7 per cent at constant currency), on top of capacity increases of 7.7 per cent
· Fuel costs for the nine months up 28.5 per cent to €3,751 million, before exceptional items (2010: €2,919 million)
· Other operating costs up 2.7 per cent at €8,061 million, before exceptional items, including €122 million or 1.0 per cent of favourable currency translation. Non fuel unit costs down 4.7 per cent, or 3.4 per cent at constant currency
· Cash down €200 million to €4,152 million (December 2010: €4,352 million)
· Group net debt down €293 million to €602 million (December 2010: €895 million)
Read the article by Bloomberg Businessweek: CLICK HERE
Copyright Photo: Rob Skinkis.