LONDON Nov 30 British airline Flybe is in talks
to buy British Midland's subsidiary operations bmi regional and
bmi baby, the Mail on Sunday reported.
The two airlines are not core to the strategy of British
Midland's new owner, Lufthansa (LHAG.DE), it said.
Lufthansa took over British Midland last month, but the
German airline has indicated it is more interested in bmi's
long-haul routes and valuable Heathrow slots than in the two
Bmi regional is UK-focused, while bmi baby is a low-cost
airline that flies to a number of European destinations.
Privately-owned Flybe is in due diligence for the two
businesses, which together make up about 40 percent of British
Midland's turnover, the newspaper reported.
Analysts have previously touted Flybe as a potential buyer
of bmi regional, saying it would fit in well with Flybe's
strategy of trying to consolidate the UK regional market [ID:
(Reporting by Rosalba O'Brien; Editing by Andrew Macdonald)