Talks begin with KLM

British Airways PLC
7 June 2000


TALKS BEGIN WITH KLM

London, Wednesday, June 7, 2000:  British Airways and
KLM announced today that they have agreed to conduct
talks on a possible combination of their businesses.

As these talks are at a preliminary stage, there is no
assurance that they will result in any transaction
between the parties.

Neither airline will be making any further public
comment on this matter until there is anything material
to say.


This press release, and all other press releases issued
          by British Airways, can be found on
             www.britishairways.com/press