Tech & Biz

BMI on Merger Rumor: "No Comment"

by Jordan Yerman | September 14, 2008 at 12:55 pm

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Skyrocketing fuel costs have weakened British airline BMI, prompting rumors of a merger with Emirates-based Etihad.

I wonder how this would affect my frequent flyer miles, as not too many Virgin affiliates fly out of Toronto!

Etihad first went to BMI in the summer over a potential deal which values BMI at £600m, the Sunday Times reported.

The Middle East airline is also said to have spoken to Germany's Lufthansa, which owns a 30% stake in BMI.

Etihad said it had had "a number of discussions with a variety of carriers" but "no firm talks planned".

BMI operates more flights from London's main Heathrow Airport than any other airline except British Airways.

Senior sources in the Gulf say Etihad, the national carrier of the United Arab Emirates, has approached both BMI and Lufthansa, the German airline that holds a stake in BMI.