Airline reviewing "all aspects" of business
BA has hired an investment bank to look into the possibility of selling its all business class subsidiary OpenSkies, Reuters has reported.
The agency said that Reynolds Partners, a London-based independent investment bank, had been asked to find a buyer for the airline launched in June, 2008.
The report comes week after OpenSkies' managing director, Dale Moss, said the carrier had missed its first year financial targets.
Mr Moss, speaking at the Business Travel Market in London in June, said it would "persevere" despite a drop on around 45% in business traffic on its two routes Paris and Amsterdam to New York.
Reuters reported that BA wanted to sell a majority stake in OpenSkies, preferably in the next two or three months.
BA declined to confirm or deny the report.
In a statement it said: "We are reviewing all aspects of our business in the current economic environment.
"OpenSkies is a small part of our business and its losses are not significant compared to losses in other parts of the company."
It is going ahead with plans to launch an all-business class service form London City Airport to New York on September 29
BA announced last Friday afternoon (July 17) that it had completed the terms of its plan to raise £350m through a convertible bonds issue.
The airline which is aiming to raise about £600m cash, said it had also agreed terms with the trustees of its pension scheme to raise up to £330m through releasing some bank guarantees.
BA is currently in continuing talks at the UK arbitration service ACAS with two unions, Unite and the GMB which represent 36,000 of its 40,000 strong workforce.
The two sides have so far failed to reach agreement on the carrier's plans to scrap 3,700 jobs, impose a two year pay freeze and change working conditions.
BA's Willie Walsh has said the carrier is in a battle for survival.
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Please keep new York Paris
Please keep new York Paris flights
BA
BA would not have lost so much money if they hadn't been invloved in fuel surcharges cartel and been fined in the Usa and Uk to the tune of around £250M. The concept of an all business class flight from London City Airport to JFK is ill founded when the aircraft does not have the range to fly non-stop. Time for Willie Walsh who appears to be out of his depth to go.
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