THE man credited with turning Castle Donington-based airline BMI into a major international business looks set for a windfall of more than £300m after agreeing to sell his shares in the company.

Yesterday, as reported in later editions of the Evening Telegraph, it was revealed that German carrier Lufthansa is to take over BMI.

Lufthansa, which already owns a 30% stake in BMI, is buying the 50% of the company owned by BMI chairman Sir Michael Bishop.

The remaining 20% of BMI is currently owned by Sweden-based Scandinavian Airlines.

The deal is thought to be worth around £318m.

Neither company was yesterday commenting on the deal but senior airline figures queued up to say Sir Michael was worth the huge windfall.

Steve Ridgway, chief executive of Virgin Atlantic, which says it wants to work with the new airline, said: "Sir Michael Bishop is one of the icons of UK aviation.

"He has been a considerable force in championing the cause of the consumer."

Mr Ridgway added that Virgin Atlantic was keen to link up with Lufthansa/BMI to compete with British Airways, which is attempting to form an alliance with American Airlines.

British Airways chief executive Willie Walsh said: "Sir Michael Bishop has done a great job for British aviation and is highly respected for all that he has achieved.

"We hope that he will continue to play a key role in the industry."

Airline industry expert John Strickland was given his first break in the sector by Sir Michael in 1982, when he joined British Midland.

Mr Strickland, who runs his own London-based aviation consultancy, said: "I regard Sir Michael as the elder statesman of the UK aviation industry.

"Although neither party is saying anything, I believe he will not have given up his share of the business without getting assurances from Lufthansa that the deal benefits BMI. This includes retaining the BMI name. But at the moment, there are more questions than answers.

"If the figures are to be believed, then I think he has got a very good price for his shares. It may have been a figure that had been agreed a while ago.

"Sir Michael is not the type to take the money and run. I'm sure that he will remain involved in the industry in some capacity."

The deal, which is expected to be completed by January 16, subject to regulatory approval, will give Lufthansa an 80% majority holding in BMI.

News that Sir Michael had agreed to sell his stake in the airline was revealed in an interim financial report issued by Lufthansa yesterday.

In it, the airline stated that Sir Michael had exercised an option dating back to 1999, in which if he decided he would sell his shares, Lufthansa would be given first refusal.

As a group, BMI comprises three companies – BMI, its long and mid-haul business, BMI Regional, which serves UK airports, and BMI Baby, its low-cost carrier.

Because the deal is yet to be finalised, Lufthansa has said it is too early to say what impact it might have on jobs.

Its two main hubs are at Heathrow and Manchester, but it also operates from 13 other UK airports, including East Midlands Airport.

BMI employs 4,300 people – around 700 of whom are based at Castle Donington.

In a statement from Lufthansa, the airline said: "Discussions regarding the future structure and options are ongoing between Lufthansa, Sir Michael and BMI."

A spokesman for Sir Michael's company, BBW Partnership, said that he would not be issuing any statements until the deal had been completed.

BMI has also declined to comment.