BMI Regional sale talks advance

IAG has indicated it has no plans to keep operating BMI Regional and BMI Baby

An Aberdeen-based consortium is closing in on a deal to buy the regional division of BMI, following the takeover of the larger BMI airline by British Airways owner IAG.

Granite Aviation is in advanced talks with IAG over the sale of the division for about £20m.

Aberdeen-based BMI Regional employs more than 300 people and operates 19 aircraft between smaller city airports.

An announcement on a possible deal is expected in the next two weeks.

If the regional deal goes ahead, Granite Aviation could take on the BMI brand when IAG stops using it on BMI's mainstream services.

IAG has said it has no plans to keep operating the regional division and low-fare BMI Baby.

Earlier this week it expressed doubts about being able to sell the two units.

IAG boss Willie Walsh said he was "not confident" about selling them.