British Airways has agreed to sell the regional operation of its subsidiary airline BA Connect to Flybe.
BA Connect’s services from London City Airport and between Manchester and New York will not form part of the proposed sale.
British Airways chief executive Willie Walsh said: “Point to point regional operations are not a strategic part of our business and we believe that such activities are better undertaken by a regional low cost airline.
“Despite the best efforts of the entire team at BA Connect, we do not see any prospect of profitability in its current form.”
Once the sale of the regional business of BA Connect to Flybe is completed, there will be a transition period until the start of the summer schedule on March 25, 2007 while the handover of responsibilities is undertaken, the airline said.
“The proposed sale to Flybe provides the best opportunity to secure the long-term future for the many dedicated staff in BA Connect,” Walsh said. “British Airways will have a 15 per cent investment in Flybe on completion of the disposal.
“London City services complement our mainline business at Heathrow. For this reason they are not included in the proposed sale.”