BRITISH
Airways’ troublesome German subsidiary DBA is set to cost the flag carrier a
further £50 million despite dumping it for the nominal value of 73p.
BA
has sold the airline to Intro, a German aviation consultancy and investment
company, but has agreed to invest £25 million in DBA and underwrite its 16
aircraft for a year at a cost of £24 million. In exchange, BA will receive a
quarter of DBA’s profits or 25% of any profit on its future disposal until June
2006.
The
airline rebranded from Deutsche BA last year as part of its move into the
low-cost market.
DBA
chairman and BA’s director of investments and joint ventures Roger Maynard said
it was a “sensible deal” in the current climate.
EasyJet bought an option to buy the carrier in May
last year but decided not to pursue its interest blaming the increasingly
competitive German market.