British Airways in talks to land BMI British Midland

British Airways is considering a possible bid for BMI British Midland, in a move that would increase its dominance of flights in and out of Heathrow airport.

Tentative discussions are believed to have taken place between Martin Broughton, BA’s chairman, and BMI’s German owner Lufthansa. Broughton flew to Germany last week with Roger Maynard, BA’s director of investments and alliances.

Virgin Atlantic and Etihad Airways, the United Arab Emirates airline, are also believed to be examining a possible offer. Any deal with Lufthansa is viewed as secondary to BA’s continuing merger talks with Spanish rival Iberia. Broughton is due to fly to Madrid this week.