British Midland has agreed a deal to acquire Heathrow-based British Airways franchise carrier British Mediterranean (BMED). British Midland is the group holding company of BMI.
In announcing the deal BMI says its holding company has subscribed to around £30m of new shares in BMED.
BMI says an agreement has been reached with BA under which the franchise agreement and any other commercial agreements that exist with them will continue until the end of the summer 2007 timetable.
BMI chief executive Nigel Turner said: 'Bringing BMed into the BMI Group creates a business with a turnover in excess of £1 billion with substantial growth opportunities. The acquisition enables the BMI group to accelerate its strategy of expansion into medium-haul markets'.
