BA offers to take major stake in Swiss airline

BRITISH AIRWAYS is offering to take a major stake in Swiss International Air Lines, while Germany’s Lufthansa is eyeing a full takeover, a Swiss newspaper reports.

Quoting an internal source, the SonntagsZeitung said BA's participation in the loss-making Swiss carrier would be accompanied by an offer for Swiss to join the oneworld alliance, Swiss's goal since the airline was created in April 2002.

The paper said that at the same time, Swiss management had been to Frankfurt in recent days to discuss a firmed-up offer from Lufthansa to take over the airline in full. Swiss has in the past said it was talking to Lufthansa, but declined to say what about. Swiss director Walter Bosch said on Saturday it was unlikely the board would decide on strategic options already at today's meeting ahead of first-half results due tomorrow but it should have made up its mind by month-end.