BA to sell no-frills airline

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The Independent Online

British Airways announced today that it is to sell its low-cost airline Go.

British Airways announced today that it is to sell its low-cost airline Go.

The news came as BA also announced a 37.5 per cent dip in half-yearly profits - although financial figures for July-September soared 400 per cent compared with summer 1999.

BA said today: "Following the successful establishment of Go as a leading no-frills airline in Europe, BA intends to realise the value created and offer the subsidiary for sale."

Go is based at Stansted airport in Essex.

BA announced that pre-tax profits for the period April-September 2000 were £150 million compared to £240 million in April-September 1999.

Despite the grounding of Concorde, the airline recorded £200 million pre-tax profits for the July-September period this year, compared to just £40 million in the same period of 1999.

BA said the improvement reflected a higher mix of premium passengers and better average fares, combined with continued cost efficiencies.

BA was also able to point to a more than doubling of operating profit to £264 million in July-September 2000 "despite the impact of higher fuel prices and the suspension of Concorde services".

On the future of supersonic airline services, which were halted following last July's Air France Concorde crash which claimed 113 lives, BA said: "We remain confident that the Civil Aviation Authority in the UK will re-issue the certificate of airworthiness; services will resume as soon as possible."

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