Sale Completed of Air Liberte to Taitbout

British Airways PLC
5 May 2000


SALE COMPLETED OF AIR LIBERTE TO TAITBOUT

London, Friday, May 5, 2000:  British Airways has
completed the sale of its 86 per cent shareholding in
French subsidiary Participations Aeronautiques, parent
company of Air Liberte to Taitbout Antibes BV, a
European financial institution controlled by Groupe
Alpha and Marine Wendel.

The terms of the sale value the whole of the existing
shareholders' interests in Participations Aeronautiques
at approximately FFr 535 million (£47 million).  This
price is subject to a final adjustment, based on the
audited net assets of Participations Aeronautiques at
March 31, 2000.  British Airways' net cash proceeds
from the sale are FFr 457 million (£40 million), subject 
to the final adjustment referred to above.

All the liabilities of Participations Aeronautiques and
its operating subsidiaries have been transferred to the
purchaser as part of the agreement.

The sale is not subject to regulatory approvals nor to
any other conditions.
     
British Airways' services between the United Kingdom
and France are unaffected by the sale of its interest
in Air Liberte.  Air Liberte will continue to operate
the flights it currently operates for British Airways -
between Heathrow and Paris Orly, and between Gatwick
and Bordeaux and Toulouse.

Lord Marshall, British Airways' Chairman, said: 'Since
British Airways' initial entry into the French domestic
airline market in 1993, competition has intensified
significantly, both in the air, and on the ground from
high speed trains.  Despite the great efforts of the
management team and employees, Air Liberte and, before
it, TAT European Airlines, have not delivered an
adequate return for British Airways' shareholders.  We
have explored every option for resolving the matter,
and the sale to Taitbout represents the best way
forward for the shareholders of British Airways, for
the employees of Air Liberte and for customers in
France.'

Alain Blanc-Brude, President du Directoire of Groupe
Alpha, said: 'Together with our existing businesses AOM
and Air Littoral, the acquisition of Air Liberte
creates the possibility for us to build a strong second
force in the French airline market to the benefit of
our customers, employees and shareholders.'


Notes to editors attached
                         Air Liberte sold to Taitbout...2



Notes to editors:

1    Taitbout Antibes BV is a European financial
institution registered in the Netherlands. Taitbout is a
company controlled by Groupe Alpha and Marine Wendel.
Taitbout bought a 50.01 per cent stake in the French
airline, AOM, in 1999. In addition, Taitbout owns 17 per
cent of Air Littoral.

2    Air Liberte operates a fleet of three DC10s, used on
routes to the French Caribbean and Reunion, ten MD83s and
11 Fokker 100s, used on its French domestic network from
Paris Orly, and some 20 smaller aircraft, mainly used on
French regional routes.  It employs 2,500 people.

3    In the year to March 31, 1999, the latest period for
which audited figures are available, the consolidated
turnover of Participations Aeronautiques was FFr 3,634
million.  The group's operating loss was FFr 394 million,
leading to a loss before tax (and before exceptional
items) of FFr 457 million.  At March 31, 1999, net
indebtedness to third parties was FFr 1,167 million.  The
group had negative shareholders' funds of FFr 1,022
million.  In the year to March 31, 2000, consolidated
turnover for the group was approximately FFr 3.8 billion.

4    The sale of British Airways' interests in
Participations Aeronautiques will be earnings enhancing
in the year to March 31, 2001, ignoring the non-cash
effect described below, as operating losses from April 1,
2000, will be avoided.  The disposal will, however,
result in a one-off, non-cash charge of approximately £56
million to British Airways' profit and loss account in
the year to March 31, 2001, as a result of, inter alia,
goodwill previously set off against reserves being
charged to profit.

5    The remaining 14 per cent of Participations
Aeronautiques is owned by Groupe Bollore, formerly Groupe
Rivaud.

6    British Airways bought a 49.9 per cent stake in
France's TAT European Airlines in January 1993 for £17.25
million, and acquired the remaining 50.1 per cent in
August 1996 for £21 million.  It took ownership of Air
Liberte in January 1997, with Groupe Rivaud, investing
£60 million, and merged TAT into Air Liberte in April
1997.

7    The exchange rate used in this statement is £1 = FFr
11.49.

For further information, contact:

British Airways          Michael Blunt   [phone]
                         Press Office    [phone]

Taitbout Antibes         Alain Blanc-Brude [phone]

Hawkpoint Partners       George Magan     [phone]
(financial advisers       Adrian Williams [phone]
to Taitbout Antibes)