Significant €13 million net loss for 2011 blamed on bmi
Lufthansa has posted a bigger-than-expected net loss of €13 million for 2011, something the German giant blamed on having to pay a high charge on the sale of its UK subsidiary bmi. The inclusion on the balance sheets of a €285 million loss from discontinued operations “reflects current losses at British Midland Ltd and valuation effects linked to its disposal,” Lufthansa explained.
IAG, the owner of British Airways, agreed in December to buy the heavily loss-making bmi for more than €200 million because it wanted to have bmi’s valuable runway slots at London Heathrow and not let them fall into the hands of a competitor.
[pictured: Lufthansa A380 in hangar, Frankfurt]