BA to sell 18% Qantas stake for €630m

BRITISH AIRWAYS (BA) took the latest step in getting its house in order yesterday when it announced plans to sell its 18% stake in Australian carrier Qantas for AUD$1.1 billion (€630 million).

The company said it would reduce its €5.7 billion debt pile to strengthen its balance sheet and leave it “in a robust position for any future European consolidation”.

Chief executive Rod Eddington declined to comment further on what shape this consolidation would take, but analysts predicted a match-up between BA and Spanish airline Iberia, in which BA already holds a 9% stake. BA has already signalled to shareholders that it considers Iberia to be a key player in its expansion plans.