Stmnt re Impact of US Events

British Airways PLC
20 September 2001


SERIES OF MEASURES ANNOUNCED

London, Thursday, September 20, 8.30am:

British Airways today announced a series of measures to address the
anticipated reduction in demand from passengers following the tragic events in
the USA last week.

Following a detailed review of the business, the measures include:

  * A reduction in flying of 10 per cent, in addition to previously
    announced reductions.
  * The withdrawal of 20 aircraft from the British Airways operation.
  * The loss of 7,000 jobs.

The impact of these changes on the British Airways' network and schedule will
be announced in due course.

Chief Executive Rod Eddington said today:'We face exceptional conditions which
have forced us to take very tough decisions.

'The tragic events in the USA will undoubtedly have a significant impact on
the demand for air travel in the months ahead. We have taken the necessary
steps to curtail expenditure and sadly to cut our workforce. Wherever possible
we will try to achieve these cuts by voluntary means. We are currently in
consultation with our unions.

'Despite the difficult market, our balance sheet remains strong and we are a
well-established business. However, we must act now to protect British Airways
for the long term.'

A reduction of 10 aircraft from the long-haul fleet will be achieved initially
by advancing the retirement of the Boeing 747-200 fleet from Spring 2002 and
then by withdrawing other wide-bodied aircraft. Six Boeing 767s and four
narrow-bodied aircraft will be withdrawn from the short-haul operation.


ends



Notes to editors:

  * The job losses represent an approximate 12.5 per cent reduction of
    British Airways' current manpower and includes the 1,800 headcount
    reduction announced earlier this month.

  * British Airways' mainline manpower equivalent figure is 56,501 as of
    August 2001.

  * The company hopes to avoid compulsory redundancies but it cannot
    guarantee it. It is releasing current contract and agency staff.

  * It hopes to achieve the reductions by conversion of full-time jobs to
    part-time; unpaid leave; reduction in overtime; contractor terminations;
    natural turnover; expiry of temporary contracts; early retirement and
    voluntary severance only where absolutely necessary.

  * Strict controls on non-essential expenditure have been put in place,
    including the suspension of spending on new capital projects and current
    projects where feasible. Suppliers' terms and conditions are being
    reviewed and a moratorium on new computer software and hardware. Cuts have
    been imposed on advertising and promotional activity.

  * British Airways has already announced a capacity reduction of 18 per
    cent by the end of 2002/2003 financial year from its peak in August 1999.

  * The size of the British Airways fleet as of August 2001 is 120 long-haul
    aircraft, 141 short-haul aircraft and seven Concordes. In the regions we
    have 19 with British Airways Regional, 66 with CityExpress and 16 with
    Deutsche BA.