Aberdeen group buys Bmi Regional in £8m deal

Sector Aviation Holdings yesterday signed a binding agreement to buy the loss-making carrier and, subject to approval from the Civil Aviation Authority, hopes to complete the deal within two weeks.

IAG chief executive Willie Walsh said: “This deal provides a future for bmi Regional and should secure around 330 jobs”.

He said Sector Aviation, previously called Granite Aviation and led by Ian Woodley, had “considerable aviation experience”. Woodley previously founded Business Air, which was sold to bmi in 1996 and eventually became Bmi Regional. The business is being funded by Stephen and Peter Bond, who are also investors in Loganair.

All of Bmi Regional’s fixed assets and liabilities, including owned and leased aircraft, are included in the sale. The airline operates 18 Embraer jets and flies to 14 destinations from UK regional airports.

Richard Baker, Labour MSP for North east Scotland and the party’s capital and infrastructure spokesman, said: “I’m pleased that Sector Aviation will take on the Bmi brand and I certainly hope that the routes flying from Aberdeen continue as this is vital to the local economy.”

Liberal Democrat MP Malcolm Bruce, whose Gordon constituency takes in Aberdeen airport, said: “Although Bmi Regional is a loss-making division, Sector Aviation do have experience in the field and I look forward to hearing more about their plans for the business.

“If they do choose to close certain routes or cancel slots this will obviously be disappointing but hopefully other routes might be developed in turn.”

IAG bought Bmi Regional as part of its £172m purchase of Bmi from German carrier Lufthansa last month, but made it clear it did not want to operate the regional section or the airline’s low-cost operation, bmibaby.

Mick Rix, national officer for civil air transport for the GMB union, said he had hoped that Bmi Regional “could have played a valuable role in the rejuvenation of BA short-haul services”.

He added that his union would be seeking meetings with the new owners to ensure staff who transferred are “treated fairly and with dignity and respect”.

IAG warned last month that its takeover of Bmi was likely to lead to up to 1,200 job losses. However, it said all 2,700 jobs at the group could have been lost had it not acquired the business.

The group, formed last year by the merger of British Airways and Spanish carrier Iberia, has so far failed to find a buyer for bmibaby. Last week it started consultations with unions about closing down the business in September.