German flagship carrier Lufthansa has announced it is looking to take over British budget regional airline bmi. In a deal expected to be worth in the region of €400 million (£314 million), Lufthansa will buy a controlling stake in the airline which flies from a number of UK gateways including East Midlands Airport. The German firm will increase its holding to 80 percent in the bmi, following an initial 30 per cent purchase made in 1999. Virgin Atlantic has expressed an interest in forming a partnership with the newly-created company, which would in turn create the largest airline in Europe. Steve Ridgway, chief executive of Virgin Atlantic, said: “Everyone has speculated that it would make sense for Virgin Atlantic and bmi to combine their long-haul and short-haul networks. “I am sure that Lufthansa realizes this could be a really good example of the right industry consolidation.” bmi recently announced it will double the number of flights to the Saudi Arabian capital of Riyadh from Heathrow Airport next year.
