Formation of New Company

British Airways PLC
27 April 2000


SIX MAJOR WORLD AIRLINES TO FORM B2B TRADE EXCHANGE

Six of the world's major airlines announced today that
they intend to form a new company that will create and
operate an internet marketplace linking carriers
worldwide with qualified sellers of airline-related
goods and services. The new venture will handle
approximately $32 billion of the six airlines' supply
chain business annually.

Founding members of the new company  -- to be named and
launched formally in the coming weeks -- are British
Airways, American Airlines, Air France, Continental
Airlines, Delta Air Lines and United Airlines.  A
technology partner will be selected later by the new
company, which will have its headquarters in the United
States.

The airlines, realising the global importance of such a
venture, want the new internet marketplace to be open to
aviation customers and suppliers worldwide.
Additionally, the partners see significant value for all
participating airlines and suppliers through lower
transaction, processing and inventory costs.

Specific items bought and sold through this 'airline
industry purchasing portal' may include items such as
fuel and fuel services, aircraft components, avionics
and engine components and maintenance services, as well
as other goods and services agreed to by the founding
airlines.

Lord Marshall, British Airways' Chairman, said: 'We
believe this is a significant step towards British
Airways' goal of becoming an industry leader in all
aspects of e-commerce. With our partners, we will create
the leading internet marketplace to serve the global
airline industry, offering a wide variety of business
services and cost-efficiencies to all participants.'



Notes to editors:

British Airways has a current annual procurement spend
of around £3.9 billion.

It aims to increase UK orders conducted on-line from 25%
to 80% by March 2002.  In addition, it aims to reduce
the number of its suppliers from 14,000 to 2,000 and to
cut individual transaction costs from £70 to £10 by
March 2002. Total spend savings are forecast to reach
£180m by March 2002.

For further information, contact:

British Airways Corporate Communications     020 8738 5100
American Airlines Corporate Communications   001 817 9671577
Air France Corporate Communications          0033 1 415656 00
Continental Airlines                 
Corporate Communications                     0011 713 324 5080
Delta Air Lines Corporate Communications     001 404 715 2251
United Airlines Corporate Communications     001 847 700 5538

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