Lufthansa Said to Reach Deal to Sell BMI to British Airways

Deutsche Lufthansa AG has reached a draft accord to sell its U.K.-based BMI unit to British Airways parent IAG and the carriers are engaged in final negotiations on the deal, two people with knowledge of the plan said today.

A memorandum of understanding on the sale of BMI’s mainline operations has been signed by the carriers and is likely to be disclosed when IAG announces earnings tomorrow, said the people, who declined to be identified because the talks are private.