BA sale of Qantas stake foreshadows alliance shakeup - analysts

0 Comments | AFP, September, 2004

SYDNEY (AFP) — British Airways (BA) said it would sell its 1.1 billion dollar (770 million US) stake in Australia's Qantas in a move seen as likely to fuel a major realignment of airline alliances.

BA said it would sell the 18.25 percent stake in Qantas within 48 hours and use its expected gross sales of 1.1 billion dollars to pay down debt and pave the way for new acquisitions in Europe.

"We now believe it is in our best interests to sell our shares to pay down our debt and continue to strengthen our balance sheet," BA chief executive Rod Eddington said in a statement.

"A strong balance sheet will place British Airways in a robust position for any future European consolidation," he said.

The Center for Asia Pacific Aviation (CAPA) said the end of...