BA Iberia announcement

British Airways PLC
26 November 2007


BA IBERIA ANNOUNCEMENT

British Airways has confirmed today (November 26th) that it will not exercise
its pre-emption rights to acquire any of the Iberia shares being sold by BBVA
and Logista.

British Airways chief financial officer, Keith Williams said: 'British Airways'
position as Iberia's key industrial partner remains important and is not
dependent on an increase in shareholding.  We will enter into discussions with
Caja Madrid in order to maximise the value of our relationship with Iberia.'

The announcement comes after two of the core shareholders - BBVA and Logista -
said they wanted to sell their shares to Caja Madrid. Under a pre-emption
agreement signed in 1999, if any of the core shareholders in Iberia wants to
sell their shares, the remaining core shareholders have the right to buy.

                                      ends

November 26, 2007                                                      118/KG/07


Notes to editors

There are five core shareholders in Iberia. BA has 9.95 per cent, Caja Madrid
9.9 per cent, BBVA 7.3 per cent, Logista 6.7 per cent and El Corte Ingles 2.9
per cent.

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.



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