Holding in Company

British Airways PLC
25 August 2000


LETTER TO:  BRITISH AIRWAYS PLC  - Dated 24 August 2000

S.198 Companies Act - Disclosure of Share Interests

We are acting on behalf of Franklin Resources, Inc. and its affiliates, which
includes Franklin Mutual Advisers, LLC and Templeton Worldwide, Inc. and its
affiliates.  Franklin Resources, Inc. and its affiliates perform investment
management and advisory services for clients on a global basis.

We wish to advise you of interests in the share capital of your Company under
management of Franklin Resources, Inc. and its affiliates on behalf of clients,
as detailed in the schedule below.
                      
LETTER FROM:  FRANKLIN RESOURCES, INC.



                                  SCHEDULE
                                
                               British Air plc

                                          Outstanding Shares   1,082,025,000

Registered Holder               No. of Shares          % of Class

Chase Nominees Ltd               36,029,878               3.3299%

HSBC Bank                         1,791,700               0.1656%

CEDE & Company                    3,538,800               0.3271%

Bankers Trust Company             1,590,521               0.1470%

State Street Nominees Limited     6,763,946               0.6251%

Bank of New York Nominees           705,179               0.0652%

Citibank Nominees Ltd.              744,224               0.0688%

Bank of New York, Europe          3,408,204               0.3150%

Deutsche Bank AG                    435,400               0.0402%

Merrill Lynch                     1,450,839               0.1341%

Northern Trust                    2,934,204               0.2712%

Midland Bank PLC                  3,990,686               0.3688%

TOTAL                            63,383,581               5.8579%