Proposed sale of BA Connect

British Airways PLC
03 November 2006

PROPOSED SALE OF BA CONNECT TO FLYBE

British Airways announced today that it has reached agreement in principle to
sell the regional operation of its subsidiary airline BA Connect to Flybe.

BA Connect also operates from London City Airport and between Manchester and New
York. These services will not form part of the proposed sale nor will the
regional ground handling business, British Airways Regional Ltd.

Willie Walsh, British Airways chief executive said: 'Point to point regional
operations are not a strategic part of our business and we believe that such
activities are better undertaken by a regional low cost airline.

'Despite the best efforts of the entire team at BA Connect, we do not see any
prospect of profitability in its current form.

'The proposed sale to Flybe provides the best opportunity to secure the
long-term future for the many dedicated staff in BA Connect.  British Airways
will have a 15 per cent investment in Flybe on completion of the disposal.

'London City services complement our mainline business at Heathrow. For this
reason they are not included in the proposed sale.'

It is envisaged that once the sale of the regional business of BA Connect to
Flybe is completed, there will be a transition period until the start of the
summer schedule on March 25, 2007 while the handover of responsibilities is
undertaken.


ends

November 3, 2006
                                     108/SR/06

Notes to editors

The proposed transaction is subject to a number of conditions including board
approval, documentation and due diligence.

British Airways announced a write down of £106 million of its investment in BA
Connect.  There is not expected to be a further material profit or loss on
disposal.

BA Connect, based in Manchester, employs 1900 staff and operates 52 routes from
13 UK regional airports. The airline is expected to carry 3.5 million passengers
on regional services in 2006/07.

Flybe, based in Exeter, employs 1800 staff in the UK regions and operates 101
routes from 21 UK regional airports. The airline is expected to carry 6 million
passengers in 2006/07.

Certain information included in these statements is forward-looking and involves
risks and uncertainties that could cause actual results to differ materially
from those expressed or implied by the forward looking statements.

Forward-looking statements include, without limitation, projections relating to
results of operations and financial conditions and the Company's plans and
objectives for future operations, including, without limitation, discussions of
the Company's Business Plan programs, expected future revenues, financing plans
and expected expenditures and divestments. All forward-looking statements in
this report are based upon information known to the Company on the date of this
report. The Company undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future events
or otherwise.

It is not reasonably possible to itemize all of the many factors and specific
events that could cause the Company's forward looking statements to be incorrect
or that could otherwise have a material adverse effect on the future operations
or results of an airline operating in the global economy. Information on some
factors which could result in material difference to the results is available in
the Company's SEC filings, including, without limitation the Company's Report on
Form 20-F for the year ended March 2006.


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