The owner of British Airways today set out plans to raise money from the bond market, using up to 31 of its lucrative Heathrow slots as security.
International Consolidated Airlines Group, which owns BA and Spain’s Iberia, said the British flag carrier was issuing bonds to raise money for costs relating to its bmi acquisition.
The airline completed its takeover of bmi from Germany’s Lufthansa this spring, receiving a “significant price reduction” on its agreed £172.5 million purchase price as it took on the bmibaby brand too.
Today BA said the bonds will be offered by one of its own subsidiaries, British Airways Limited, whose assets include up to 31 daily slot pairs at Heathrow airport, and half of the joint venture route it runs between London City airport and New York JFK airport.
