International Airlines Group (IAG) is considering shutting down BMIbaby by 10 September if a buyer is not found for the BMI subsidiary.
IAG acquired the carrier, as well as BMI Regional, as part of its £172.5 million ($279.1 million) purchase of BMI from Lufthansa in April. Previous attempts by both BMI and Lufthansa to sell the subsidiaries separately were unsuccessful.
"[BMIbaby] has continued to struggle financially, losing more than £100m in the last four years," says Peter Simpson, BMI interim managing director, in a statement. "To help stem losses as quickly as possible and as a preliminary measure, we will be making reductions to BMIbaby's flying programme from June."
BMIbaby will end all flights to Belfast, flights between East Midlands and Amsterdam, Edinburgh, Geneva, Glasgow, Newquay, Nice and Paris, and those between Birmingham and Amsterdam and Knock on 11 June.
BMI says that it has made "progress" towards finding a buyer for BMI Regional, in the statement.
Source: Air Transport Intelligence news
