British Airways plc reportedly is considering making a £1 billion ($1.96 billion) bid for smaller British carrier bmi, according to The Times of London. However, BA may have competition from Lufthansa AG and other European carriers. Lufthansa holds a 30% stake in bmi, giving the German airline the first right of refusal should bmi go on the block. The impetus for the deal talk is the recent "open skies" ruling, which will open U.S. trans-Altantic routes to more European carriers. BA controls 40% of the gates at London's Heathrow, and bmi controls another 13%, making it a prize for any large carrier interested in the London-to-New York market, according to The Times. Obviously, BA wants to lock out rivals, and taking out bmi would help achieve that goal. —Matthew Wurtzel
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