Flybe

Flybe in talks to buy bmi regional, bmi baby

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London - British airline Flybe is in talks to buy British Midland's subsidiary operations bmi regional and bmi baby.

The two airlines are not core to the strategy of British Midland's new owner, Lufthansa, 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 subsidiaries.

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.

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