Concorde announcement

British Airways PLC
10 April 2003



END OF AN ERA


London April 10, 2003: British Airways announced today the retirement of its
Concorde fleet of seven aircraft with effect from the end of October 2003.

The airline said that its decision had been made for commercial reasons with
passenger revenue falling steadily against a backdrop of rising maintenance
costs for the aircraft.

Detailed discussions over an extended period with Airbus, the aircraft's
manufacturer, confirmed the need for an enhanced maintenance programme in the
coming years, the carrier added.

British Airways has decided that such an investment cannot be justified in the
face of falling revenue caused by a global downturn in demand for all forms of
premium travel in the airline industry.

The downturn has had a negative impact on Concorde bookings and is set to
continue for the foreseeable future, according to the airline.

Rod Eddington, British Airways' chief executive, said: 'Concorde has served us
well and we are extremely proud to have flown this marvellous and unique
aircraft for the past 27 years.

'This is the end of a fantastic era in world aviation but bringing forward
Concorde's retirement is a prudent business decision at a time when we are
having to make difficult decisions right across the airline.'

Noel Forgeard, president and chief executive officer of Airbus, said: 'Airbus'
predecessors Aerospatiale and British Aircraft Corporation created Concorde some
40 years ago and we are proud of this remarkable achievement.

'But its maintenance regime is increasing fast with age. Thus, as an aircraft
manufacturer, we understand completely and respect the decision of British
Airways, especially in the present economic climate.

'It goes without saying that until the completion of the very last flight, we
will continue to support the airline so that the highest standards of
maintenance and safety are entirely fulfilled.'

Mr Eddington added that today's announcement is not a direct result of war in
Iraq.

He said: 'While the threat of war and resulting military conflict have had a
further impact on premium travel demand, the decision to retire Concorde has
been based on a long-term revenue and cost trend rather than recent events.

'I would like to place publicly on record my sincere thanks and appreciation to
all our staff, past and present, who have made the Concorde story one of the
most compelling in the history of commercial flight.

'Our pride in the aircraft will never wane and I am determined that we make its
final six months in the sky a time for celebration.'

Retiring Concorde will result in £84m write-off costs for the year ended March
2003.

The airline is already planning to make its Concordes available for the public
to view in museums.

To honour the past 30 years of supersonic travel, British Airways will announce
shortly a programme of special events and promotions for air travellers.

For the next few months, British Airways will continue to operate its Concorde
services between London Heathrow and New York JFK and seasonal services to
Barbados.

                                      Ends

April 10, 2003 JD/037/03

Notes to Editors:

  • To mark today's announcement, British Airways is offering a range of
    special Concorde fares. The offers, on sale from today in the UK until April
    17 for travel until the end of August, are:

£1,999 for one way Concorde, one way World Traveller

£2,199 for one way Concorde, one way World Traveller Plus

£2,999 for one way Concorde, one way Club World

£3,499 for one way Concorde, one way First

£3,999 Concorde return

  • Passengers can book by calling 0845 77 333 77 or visiting your local
    travel agent. Fares are subject to a Saturday night stay restriction and
    cannot be changed or refunded.

  • Concorde is the world's only supersonic passenger aircraft, cruising
    around 1,350 miles per hour, and at an altitude of up to 60,000 feet (more
    than 11 miles high).

  • Concorde travels at twice the speed of sound and can cross the Atlantic in
    just over three hours.

  • More than 2.5 million passengers have flown supersonically on British
    Airways' Concordes since the aircraft entered commercial service in 1976.

  • Concorde wowed the London crowds in June 2002 as it spearheaded the Red
    Arrows in a special flypast for the Queen's Golden Jubilee.

Certain information included in this statement 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 'Future Size and Shape' programme, 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 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. Information on some
factors which could result in material difference to the results is available in
the Company's SEC filings, including, without limitation the Company's Report on
Form 20-F for the year ended March 2002.


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