Holding in Company

British Airways PLC
3 August 2000


LETTER TO:    BRITISH AIRWAYS PLC

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               46,610,156            4.3077%
HSBC Bank                         1,791,700            0.1656%
CEDE & Company                    3,565,800            0.3295%
Bankers Trust Company             1,587,472            0.1467%
State Street Nominees Limited     6,759,823            0.6247%
Bank of New York Nominees           717,179            0.0663%
Citibank Nominees Ltd.              748,224            0.0692%
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                    2,933,344            0.2711%
Midland Bank PLC                  4,005,336            0.3702%

     TOTAL                       74,013,477            6.8403%