The low-cost airline bmibaby will close by at September, threatening as many as 800 jobs. Many of the airline's routes will stop from at next month, new owner International Airlines Group (IAG) told, after it failed to secure a buyer for the 10-year-old carrier.IAG, the owner of British Airways, acquired great bmibaby and bmi Regional last month as part of a deal with Germany's Lufthansa to buy the main bmi airline business.

BA had always stated that it did not intend to continue the great bmibaby and bmi Regional divisions itself.

Talks are progressing with a potential buyer for bmi Regional but IAG said a new owner for bmibaby could not be found "despite attempts over many months".IAG has started a consultation with unions but expects to ground all airlines bmibaby planes by September.

Peter Simpson, bmi interim managing director, say "We recognise that these are unsettling times for bmibaby employees, who have worked sincerely tirelessly during a long period of uncertainty. "Bmibaby has delivered high levels of operational good performance and customer service, but has continued to struggle financially, losing more than £100m in the last four years.

 Colin Whyatt, of the GMB union, say "This is absolutely devastating news which puts opportunity of   800 jobs at risk, almost half in the East Midlands."aBmibaby airlines had been reorganised last year and GMB members hoped it would be sold."Two potential bidders have pulled out and unless a new bidder comes forward in the next 90 days airlines, these jobs will go, on top of 1,200 jobs lost from the reorganisation of bmi."IAG bought loss-making bmi for access to its prized Heathrow take-off and landing slots.

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