CASTLE Donington-based airline BMI and its owner Lufthansa said last night it was too early to speculate how sell-off plans could affect employees.

The German air operator has confirmed it is considering selling all or part of BMI.

But it is not yet known if this could affect the 527 people it employs at its Donington Hall head office.

BMI, the parent company of BMI baby, which flies from East Midlands Airport, was taken over by Lufthansa in July 2009.

In the first half of this year, BMI made losses of £105m.

As previously reported, uprisings in the Middle East and Egypt as well as rising fuel prices were blamed for the dip.

A Lufthansa spokesman said: "Since we are the shareholder of BMI it is an option to sell the company.

"A sale, or looking for a partner to buy just a part of the company, are both options."

The spokesman said there was no time-scale in place for making a decision.

Top aviation expert John Strickland, of JLS Consulting, formerly employed by British Midland Airways and British Airways, said it was difficult for airlines to retain staff during take-overs because of the state of the industry.

He said: "The industry is having a tough time because of economic pressures such as weak consumer demand, rising fuel prices and Government taxes.

"Airlines would never deliberately look to reduce staff numbers but when push comes to shove it's a case of survival of the fittest."

Mr Strickland said British Airways had already made it clear that it was interested in BMI, especially because it would fit in with the departure and arrival times it has rights to at Heathrow.

He added: "There are airlines to whom different parts of BMI could be of interest."

Jackie Williams, regional officer for union Unite in the East Midlands, said she would know if jobs were at risk at BMI baby and that she had not heard anything.

She said: "There have been a lot of changes in the aviation sector in recent years so perhaps the potential sale is not as surprising as it would have been seven or eight years ago. But we are always concerned when there are changes in ownership."

She was unable to comment about the parent company BMI.

However, a BMI spokeswoman said: "Together with Lufthansa we are exploring and assessing various options. No decision has been taken and it's far too early to comment on any possible outcome."

Last month, BMI said it expected a return to profitability in the "medium term".

A BMI spokeswoman said: "We continue to focus on offering flights to and from key domestic destinations and to international destinations in Europe, Russia, the Middle East and Africa.

"Earlier this year the airline launched new routes to Morocco, Norway and Switzerland.

"In June, BMI announced new flights to India and, in July, to France.

"The airline's short-haul and mid-haul fleet have been refurbished with new seating and cabin interiors.

"BMI continues to offer customers great service to drive their loyalty. This will help the airline achieve its target of returning to profitability in the medium term."