BA to give up Qantas stake for £437m

Qantas confirmed today that British Airways plans to sell its 18.25% stake in Australia’s flag-carrier over the next two days.

The stake, which BA has held for 11 years, is expected to sell for £437m (€641.9m).

“British Airways has been a supportive shareholder over a period of some 10 years and both airlines have formed a strong and constructive commercial relationship,” said Qantas chief executive Geoff Dixon. “Neither airline now believes the shareholding is necessary for the ongoing conduct of that relationship.”

There was speculation in Australia that the BA’s sell-off could interest regional heavyweight Singapore Airlines, which has long looked for a steady foothold in the Australian market.

Other possible airline suitors include one of the three major Chinese airlines or the recently merged KLM/Air France which is looking for expansion opportunities in the Southern Hemisphere.