Bmi in talks to sell off its Heathrow slots to cut debts
Loss-making carrier Bmi is in advanced negotiations to sell its prized Heathrow take-off and landing slots to plug debts of £190m.
A spokesman for the airline said: “Negotiations are significantly advanced with several airline groups.”
Bmi is the second largest holder of slots at Europe’s busiest airport, behind British Airways, with 11.5 per cent of the available air traffic.
Bmi, which is owned by German carrier Lufthansa, estimates in its 2008 accounts these slots are worth £616m, though this is down from £770m the year before.
This loss is due the battering the industry has taken from the financial crisis, which has hit both leisure and business traffic.
Bmi made a pre-tax loss of £155.6m in 2008, compared with a profit of £15.5m the previous year.
Any sale will attract interest from rivals British Airways and Virgin Atlantic, as well as fellow members of the Star Alliance to which Bmi and Lufthansa both belong.
However, even though Bmi is in talks about a sale of some of its slots, the move it still very much a last-ditch measure.
Lufthansa has agreed to prop up its UK subsidiary with a £95m loan. And the British carrier still hopes to persuade its German parent to lend it the remaining £95m.
Bmi’s finances have been a concern for some time. It was forced to ditch plans to freeze pilots’ wages back in February, but asked them not to demand their pay immediately.