Lufthansa Struggles to Dump BMIbaby Unit as IAG Deal Nears Close

Deutsche Lufthansa AG is struggling to offload discount airline BMIbaby, potentially reducing proceeds from the sale of its entire U.K. business to British Airways parent IAG.

German turnaround specialist Intro Aviation GmbH, which had expressed an interest in BMIbaby, has ended talks, Managing Director Peter Oncken said in a e-mail. Charter carrier ACL has also dropped plans to make a bid, said a person familiar with the matter who declined to be identified discussing private talks.