BMI Baby to be grounded by BA owner IAG

BMI Baby, the budget airline, will be grounded from September, with some routes being stopped from next month, owner IAG has announced.

The move by the owner of British Airways (BA), which bought BMI from Lufthansa last month, puts almost 500 jobs at risk.

IAG is still open to offers for BMI Baby, but expressed doubts last month that a buyer would be found.

The airline, based at East Midlands Airport, is losing about £25m a year.

While BMI's mainstream operations are being integrated into BA, talks are described as "positive" on a sale of its Aberdeen-based Regional division, which has 300 staff, says BBC's Scotland business and economy editor Douglas Fraser.

Source & Image : BBC