AIRLINE SELLS QANTAS STAKE

British Airways PLC
07 September 2004

NOT FOR DISTRIBUTION IN THE UNITED STATES



AIRLINE SELLS QANTAS STAKE


British Airways has announced its intention to sell its 18.25 per cent
shareholding in Qantas by way of an underwritten offering managed by an
international bank.


The gross sale proceeds are expected to be not less than A$1,090 million
(approximately £425 million).


British Airways acquired its original shareholding in Qantas in 1993 for A$665
million (£304 million).  Since the original investment British Airways has
received A$600 million in dividends.


British Airways' chief executive Rod Eddington said: 'Our shareholders have had
a good return from our investment in Qantas.  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.


'A strong balance sheet will place British Airways in a robust position for any
future European consolidation.


'The share sale has no impact on the existing business relationship between the
two airlines and is not linked to our joint services agreement (JSA) which
continues. The JSA is a strong, well established relationship which brings real
commercial benefits to both British Airways and Qantas.'


The JSA between British Airways and Qantas has recently been given draft
approval for a five- year extension by the Australian Competition and Consumer
Commission.


The JSA includes joint flight schedules, sales and operations between Australia,
South East Asia, the UK and Europe.


A further announcement about the share sale will be made in the next 48 hours on
conclusion of the process.

                                      more

September 7, 2004                                                   085 /LDV/04

Notes to editors overleaf


Notes to Editors:



1.       British Airways plc ('BA') has entered into an underwritten agreement
to place its entire 18.251% stake in the Australian airline Qantas Airways
Limited ('Qantas') into the market.

2.       Qantas is listed on the Australian Stock Exchange and BA's shareholding
in it was held through a wholly owned subsidiary, British Airways (Investments)
Australia Pty Limited.

3.       The gross sale proceeds are expected to be not less than A$1,090
million and will be satisfied wholly in cash by September 14, 2004.

4.       BA will also receive a final dividend from its Qantas shareholding
totalling A$30.3million (approximately £12 million) and payable on September 29,
2004.

5.       Total proceeds before taxation from the dividend and sale of shares are
expected to be approximately A$1,120 million (approximately £437 million).
Taxation payable on the sale is expected to be approximately A$33 million
(approximately £13 million).

6.       There will be a provisional accounting loss on sale for UK statutory
accounting purposes of approximately £12 million pre-tax.  This will be
recognised in BA's half-year results to September 30, 2004.

7.       In BA's UK reported statutory accounts for the year ended 31 March 2004
the net assets of Qantas which are the subject of the transaction were included
at £390 million and the pre-tax profit attributable to BA's shareholding in
Qantas was £47 million.

8.       BA intends to use the proceeds to repay part of its existing gross debt
which at June 30, 2004 amounted to £5.6bn.

9.       Qantas closing share price on Tuesday September 7, 2004 was A$3.33.
BA's closing share price was £2.36p.

10.   The two carriers began co-operating on the 'kangaroo' routes in 1995
following approval for revenue sharing from the Australian competition
authorities.




This press release does not constitute an offer of any securities for sale.  The
securities offered will not be registered under the U.S. Securities Act of 1933
and may not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements.


Certain information included in this press release is forward-looking and
involves risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by the forward-looking statements.
The forward-looking statements include, without limitation, the expected
proceeds from the sale, and the anticipated use of proceeds and the provisional
accounting loss on sale which is un-audited.  All forward-looking statements in
this press release are based upon information known to the Company on the date
of this press release.  The Company undertakes no obligation to publicly update
or revise any forward-looking statement, whether as a result of new information,
future events or otherwise.


It is not reasonably possible to itemise all of the many factors and specific
events that could cause the Company's forward-looking statements to be incorrect
or that could otherwise have a material adverse effect on the future operations
or results of an airline operating in the global economy.  Some factors that
could significantly affect the expected proceeds from the sale and the
anticipated use of proceeds include those available in the Company's SEC
filings, including, without limitation, the Company's Annual Report on Form 20-F
for the year ended March 31, 2004.





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