Lufthansa has had to wait longer than expected to offload the regional subsidiary of BMI.
The sale, to a group of UK investors known as "Granite Aviation", had been due to complete at the end of last year. However, the process stalled owing to the fact that an investment group, rather than another airline, was purchasing BMI Regional, a source close to the matter explained.
"The process has been very slow, because Granite only comprises three people and has no existing airline infrastructure in place," he said.
In particular, there were no support services in place for BMI Regional's fleet of aircraft, which took time to negotiate, the source said. Now there is a transitional service agreement in place whereby BMI will support BMI Regional for the first six months after sale completion.
The share purchase agreement has been finalised, along with proof of funding, the source said. BMI Regional has also secured an agreement to continue operating four of the five Embraer ERJ-145s it has been wet-leasing from BMI. The regional subsidiary additionally operates a fleet of four ERJ-135s and 15 ERJ-145s.
Ian Woodley, Graeme Ross and Robert Sturman, who have prominent roles within Granite, are understood to be the likely candidates to head up BMI Regional following its acquisition. Woodley and Ross were the founders of Business Air, which was sold to British Midland in 1996 and changed its name to BMI Regional. Sturman was CEO of British World Airlines for a decade, before working in various aviation advisory roles.
A leaked memo issued to staff at BMI Regional at the end of last year stated: "The intended buyer plans to continue the airline as an independent entity and will operate from the current head office in Aberdeen and its bases already established in the UK. The new owner will further develop the regional network in both the UK and Europe."
Meanwhile, International Airlines Group recently pipped Virgin to the post to acquire BMI for £172.5 million, in a deal that is scheduled to complete in March 2012.
Source: Commercial Aviation Online
