PARIS – British Airways and the Spanish carrier Iberia beat out Virgin Atlantic on Thursday in the bidding for British Midland International, the unprofitable airline being sold by Lufthansa of Germany.

The International Airlines Group, the parent company of British Airways and Iberia, will pay 172.5 million (about $270 million) for the airline, known as B.M.I. That topped a competing bid from Virgin Atlantic Airways.

The purchase would give the group 56 additional daily takeoff and landing slots at Heathrow Airport, Europe’s busiest, where it already controls 45 percent of the commercial air traffic.

I.A.G. said its full offer was only for B.M.I.’s mainline carrier, which serves Europe, the Middle East and Africa, and was contingent on Lufthansa finding other buyers for two subsidiaries: BMI Regional, which serves Britain, and Bmibaby, a low-cost carrier.

”Buying B.M.I.’s mainline business gives I.A.G. a unique opportunity to grow at Heathrow, one of our key hub airports,” Willie Walsh, the International Airlines chief executive, said in a statement. ”Using the slot portfolio more efficiently provides the option to launch new long-haul routes to key trading nations.”

Mr. Walsh warned that there was an ”urgent need” to restructure B.M.I., which lost 153 million in 2010 before tax and is expected to record another significant loss for 2011. As a result, this would require the elimination of an unspecified number of jobs in the short term.

Virgin Atlantic, which is owned by Richard Branson’s Virgin Group and Singapore Airlines, had made an 11th-hour bid for B.M.I. last week, arguing that a takeover by International Airlines would be ”disastrous for consumer choice.” Virgin Atlantic controls 3 percent of Heathrow’s slots.

In a statement, Mr. Branson confirmed that Virgin Atlantic had ended its talks with Lufthansa, but said the company would ask British antitrust regulators to block the deal.

”Claiming that this deal is about new markets from Heathrow is a smoke screen,” Mr. Branson said. ”We will fight this monopoly every step of the way.”

Virgin did not disclose the value of its offer, which British media reports last week said was closer to 50 million. Virgin said on Thursday that its bid was a ”fair one in view of B.M.I.’s financial difficulties.”

International Airlines warned that it would make a ”significant” reduction in its 172.5 million offer if Lufthansa did not find other buyers for Bmibaby and BMI Regional before completion of the deal, which is expected in the first quarter of next year.

”BMI Regional and Bmibaby are not part of our plans,” International Airlines said.

B.M.I. said in October that it was in ”advanced discussions” to sell BMI Regional by the end of the year to a British investment group, which it did not identify.

Lufthansa declined to comment on the fate of Bmibaby. But according to one person with knowledge of Lufthansa’s plans, it has held initial discussions with a British-based aviation company about a possible sale.

The German carrier will be selling its B.M.I. investment at a loss. Lufthansa paid 223 million, including an initial stake purchased from B.M.I.’s founder, Michael Bishop, in 1999. Lufthansa was then forced to take majority control when Mr. Bishop exercised a put option of his 50 percent plus one share stake in 2008.

This is a more complete version of the story than the one that appeared in print.

PHOTO: British Midland International is expected to join British Airways in the International Airlines Group by early next year. (PHOTOGRAPH BY CHRIS RATCLIFFE/BLOOMBERG NEWS)

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