From The BBC:
UK airline BMI has declined to comment on newspaper speculation that it has been approached by Abu Dhabi carrier Etihad over a possible merger.
Etihad first went to BMI in the summer over a potential deal which values BMI at £600m, the Sunday Times reported.
The Middle East airline is also said to have spoken to Germany’s Lufthansa, which owns a 30% stake in BMI.
Etihad said it had had “a number of discussions with a variety of carriers” but “no firm talks planned”.
BMI operates more flights from London’s main Heathrow Airport than any other airline except British Airways.
Industry-wide issues
Like almost all airlines, BMI has seen its profits trimmed this year by the continuing high price of aviation fuel.
This has led to a number of carriers seeking closer ties with rivals, such as British Airways plans for a tie-up with American Airlines.
Other carriers have faced financial problems, such as Italy’s Alitalia, which is trying to secure a rescue deal.
BMI flew 10.6 million p…
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