International Airlines Group (IAG) expects restructuring costs for acquisition target BMI to total £100 million ($159.3 million), if the takeover is permitted by the European Commission.
Speaking to analysts today to discuss IAG's 2011 financial results, chief executive Willie Walsh said that BMI would be fully integrated into British Airways and that restructuring costs would be spread over three years. The majority of these costs will be incurred in year one.
Walsh expects a decision from the European Commission on whether the deal can go ahead by the end of March, with 16 March being the earliest possible decision date.
"We intend to move fast with the integration" said Walsh.
IAG has agreed to take over BMI from Lufthansa through a £172.5 million cash deal. However, the acquisition price will be lowered if Lufthansa fails to sell BMIbaby and BMI Regional separately.
"We do have plans in place if we end up acquiring BMIbaby as well," said Walsh, without elaborating.
IAG's focus in 2012 will be the integration of BMI, although it remains "open to any further consolidation opportunities", said Walsh, adding that there is "nothing on the agenda at this stage".