Eye deal

British Airways PLC
10 November 2005




EYE DEAL



British Airways and The Tussauds Group today (Thursday November10) signed a
memorandum of understanding  (MoU) which  paves the way towards securing the
long term future of the British Airways London Eye.



British Airways will sell its entire interests in the Eye including its one
third share and its outstanding loan to the company for £95 million. The airline
plans to continue its brand association with the attraction by extending its
franchise agreement.



Martin George, British Airways' commercial director said: 'I am delighted that
we have reached an agreement that paves the way towards securing the future of
the Eye for generations to come.  British Airways has supported the Eye for
nearly a decade and will continue to do so with the extension of its franchise
agreement.



'The deal will also enable us to continue to strengthen our balance sheet and
focus on our core business.



'Tussauds has proven experience as the operator of the Eye and since its launch
in 2000 has helped make the Eye the most popular paid for attraction in London.
The company is committed to the future development and success of the Eye for
the benefit of the consumer and London's £6.6 billion tourism industry.'



Peter Phillipson, chief executive of The Tussauds Group said: 'It has been
everyone's objective to create a financially secure and long-term future for the
London Eye and this deal will achieve this.



'We believe that we have the operational experience through our city centre
attractions such as Madame Tussauds; theme parks like Thorpe Park; and national
historic treasures like Warwick Castle to continue to develop The Eye as an icon
that London and Londoners can remain proud of.



'We are extremely excited about the prospect of taking the Eye forward and
developing this great cultural attraction. We plan to invest £50 million in the
attraction over the next five years.'

                                      ends

November 10, 2005
126/KG/05



Notes to editors:



At 135metres high, the BA London Eye is the world's largest observation wheel.
Since it opened in 2000, it has attracted 18 million visitors.



The Eye has three equal shareholders: British Airways, The Tussauds Group and
Marks Barfield Architects.



The Eye was conceived and designed by Marks Barfield Architects and has won over
40 awards for national and international tourism, outstanding architectural
quality and engineering achievement, including the People's Choice award in 2001
and 2002.



British Airways became involved in the London Eye in 1996.  The attraction was
the centrepiece of the millennium eve celebrations.



Attached to the MoU is an exclusivity agreement. The book value of the debt is
currently £175.2 million.


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