BA ends UK franchises

British Airways PLC
25 October 2007



BA ENDS UK FRANCHISES


British Airways is to end its franchise agreement with GB Airways from March
2008 and intends to start services on some of the routes operated under the
franchise.


British Airways plans to start services from Heathrow to Faro and Malaga and
from Gatwick to Faro, Gibraltar, Ibiza, Malaga, Palma and Tunis. The new
services will start from March 30, 2008.


The airline will also end its franchise with Loganair from October 25, 2008 and
begin a codeshare arrangement with the Scottish carrier.


British Airways chief executive Willie Walsh, said: 'UK franchises have outlived
their purpose.  easyJet has made an offer to buy GB Airways and this has enabled
us to end the franchise agreement early.  We had an option to buy GB Airways but
we rejected it.


'We have a significant base at Gatwick and our focus will be on maintaining and
developing it as an integral part of our business.'


There will be a transition period until the end of the franchise agreements.
British Airways, GB Airways, easyJet and Loganair are committed to ensuring a
smooth transition for passengers during this period.


GB Airways will continue to operate as a British Airways' franchise partner on
their existing network to destinations in Europe and North Africa until March
29, 2008. Loganair will continue to operate as a franchise partner on Scottish
routes until October 25, 2008.


The deal between GB Airways and easyJet is expected to be completed within eight
weeks.  During this period flights will operate as normal. On completion,
passengers can accept to be rebooked on easyJet or will be entitled to a full
refund.


                                      ends

October 25, 2007                       106/KG/07


Notes to editors:


The BMED franchise ends on October 27, 2007.


Certain information included in these statements 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.


Forward-looking statements include, without limitation, projections relating to
results of operations and financial conditions and the Company's plans and
objectives for future operations, including, without limitation, discussions of
the Company's Business Plan programs, expected future revenues, financing plans
and expected expenditures and divestments. All forward-looking statements in
this report are based upon information known to the Company on the date of this
report. 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 itemize 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. Fuller information on
some factors which could result in material difference to the results is
available in the company's Annual Report for the year ended 31 March 2007, which
is available on www.bashareholders.com.



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