Through an existing agreement, BMI's owner required Lufthansa to take the 50% (minus 1 share) stake of its chairman, from some pre-existing agreement. As discussed in detail on
the bmi forum.
So who invented the Etihad strawman?
Story is that Virgin Atlantic welcomes the news as it could lead to a VA / BD tie-up, against BA.
BMI Takeover: Air Battle Heats Up [Sky News]
German airline Lufthansa is to take over British airline BMI - fuelling an airline battle.The move was welcomed by Virgin Atlantic, who said the deal could allow anBMI alliance between the two companies to rival competitor British Airways.
The deal is expected to be completed by mid-January.
It will give Lufthansa control of more flights from London Heathrow airport than any other airline except British Airways.
Steve Ridgway, chief executive of Virgin Atlantic, paid tribute to Sir Michael - and said the deal would allow BMI and Virgin to combine their networks.
He said: "Michael is one of the legends of UK aviation. He has been a considerable force in championing the cause of the consumer and, along with Virgin Atlantic, has helped to provide much-needed competition to British Airways.
"Now we are about to enter the next phase of BMI's future and a turning point in aviation.
"Everyone has speculated that it would make sense for Virgin Atlantic and BMI to combine their long-haul and short-haul networks.
"There is now a major opportunity to do that and create a new, strongly viable competitor to BA."