Bmibaby to Shut Operations in September

The UK-based airline holding company, International Airlines Group (IAG), has announced its plans to terminate the operations of its low cost airline, Bmibaby.

Bmibaby, a subsidiary of UK-based British Midland Airways Limited (bmi), is to close its operations from September 2012.

British Airways, also owned by IAG, will be offering work to around 1,500 of Bmi’s 2,700 staff, including pilots and cabin crew. Currently, around 87 pilots and 125 cabin crew members have been absorbed by British Airways.

Bmi, an airline that was previously owned by Lufthansa, a German airline company, has only recently been acquired by IAG. Previously IAG had announced that it would be closing the operations of Bmibaby, reportedly due to its inability to sell the loss-making airline. The Bmibaby operations have been reduced in the last three months, and in September 2012, they will cease altogether.

Willie Walsh, IAG’s chief executive officer said, ‘We completed the employee consultation on August 1 and we have decided to close Bmibaby with effect from September 9.’

The acquisition has opened up 12 London Heathrow Airport slots, which have been given up by British Airways, as part of its agreement to receive approval for the deal from the European Commission.

Said Walsh, ‘We don’t know who is going to take them up (the airport slots). But they are unlikely to be taken up before the start of the summer season which is at the end of March next year.’

Currently all Bmi flights are being offered from British Airways products catalogue, and the airline is being managed by British Airways.