A very good source tells me that Virgin Atlantic will buy "most of" bmi (British Midland International) within 90-120 days and Virgin Atlanic will join Star Alliance within a year after that. The bmi name will go away and the Virgin Atlanic name will stay after they fully join. Lufthansa is ready to sell bmi after they off load a few more LHR slots trying to make some money back from their "investment". My source adds that Lufthansa wants to make sure that who every they sell too will keep the important UK routes in Star.
I do not think this is any new news but from what i'm told the talks have very much picked up this week, and a deal is getting close.
It was added that bmi, which comprises bmi mainline, the Low Cost bmibaby and bmi regional might be broken up in the sale. Lets just hope there is not an airline called "Virgin Baby".
Again this is just new info I got from a source today and as we all know things change by the day on stuff like this!