British Midland (bmi) appointed former Scandinavian Airlines deputy CEO Vagn Ove Sorensen to succeed Lufthansa (LH) executive board member and Group Airline chief officer Stefan Lauer as bmi chairman, yet another move indicating that LH Group is interested in selling its loss-making UK subsidiary.

LH has reportedly mandated banks to look into a potential sale of bmi. "We are open to take external advice in the event we do take the decision to sell bmi," an LH spokesman said. He reiterated the divestment of bmi has "always been an option" and declined to comment on whether it had appointed a financial services firm as an advisor on the sale.

Last week, Lauer told ATW that LH's options do include selling the loss-making airline.

In a statement released Monday, Lauer said Sorensen's "experience with corporate restructuring is of particular importance and value to the company in this crucial period." LH noted that "the change makes sense in terms of good corporate governance by avoiding possible conflicts of interest that could result from a dual role as both a member of the Lufthansa executive board and chairman of the bmi board." Lauer has been chairman of the bmi board of directors since July 2009.

Several airlines -- including British Airways (BA), Virgin Atlantic and Flybe -- have expressed interest in acquiring bmi or part of bmi, which comprises bmi mainline, the LCC bmibaby and bmi regional.

International Airlines Group (IAG), parent of BA and Iberia, said Monday it is still interested in acquiring bmi mainline, which would enable BA to take advantage of bmi's takeoff and landing slots at London Heathrow. "We have made no secret of our interest in bmi's Heathrow slots," an IAG spokeswoman told Reuters. "Lufthansa said a few weeks ago that they were looking at their options regarding bmi, so the ball is firmly in Lufthansa's court. But there's nothing imminent happening from our side."