BA will consider bids for troubled rivals

British Airways will use its large cash pile to buy into rival airlines weakened by the fuel price if it can take a controlling stake.

BA chief executive Willie Walsh said the airline would survive and prosper through the oil-price crisis after slashing its debt and building a hugely profitable operation with cash reserves. The carrier reported an operating profit of £875 million for the year to March.

Walsh said: “There will be opportunities for BA. That is one reason we wanted to maintain a strong balance sheet.” However, he said BA would only be interested in a stake that gave control of a carrier.

He insisted BA would weather the fuel-price storm. “BA’s business model is sustainable at an oil price of $120 a barrel,” he said. “Our focus is primarily on long-haul and long-haul business travel tends to be robust.”

Share article

View Comments

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.