German flag carrier Lufthansa is taking over Britain’s BMI for €400m (£318m) leading to another shake-up in the airline industry in Europe.

Lufthansa, which already had under 30% stake in BMI, has bought 50% stake of Sir Michael Bishop, chairman BMI, taking control of 80% stake. The balance 20% remains with Sweden-based Scandinavian Airlines, which also intends to sell off its stake.

Lufthansa would be gaining second biggest takeoff and landing slots share at Heathrow airport after British Airways. BMI’s share of slots at Heathrow is 11.4%, next only to 41.5% held by BA.

Virgin Atlantic’s, Sir Richard Bransons, who is seeing Lufthansa as major rival to BA, welcomed the deal. While its chief executive, Steve Ridgway, praised Michael Bishop as one of the icons of UK aviation who championed the cause of consumers and helped in providing much needed competition to BA and one more choice to consumers.

Lufthansa is facilitating consolidation of European aviation industry. It bought 45% stake in Brussels Airlines with option of outright takeover of Belgian airline in 2011. It has plans to buy stakes in Italy’s Alitalia and Austrian Airways.

BMI origins back to 1938 and was known as British Midland in 1964. The name was later changed to BMI. It flies fleet of 51 aircrafts to 51 destinations and handled 10.6 million passengers last year.

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