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BA sells Galileo shares in streamlining drive

BRITISH Airways’ drive to steamline activities to just profitable core airline operations has led to the sale of its stake in Galileo International.


BA sold its 6.7% stake back to Galileo for £192m, making the airline a profit of £149m.


A BA spokesman confirmed the carrier’s decision was made in line with a policy of getting out of any non-core airline business.


Galileo agreed to buy BA’s subsidiary Britair Acquisition Corp which held 7m shares.


Two years ago, BA made £157m from its part-sale of 5.9m Galileo shares after saying a stake in the computer reservation system was not a strategic investment. BA set up Galileo in 1973 with a group of airlines including KLM and United Airlines. They sold their stakes last year.


The Galileo sale comes after BA sold off its Gatwick-based catering operation to Alpha Airports Group earlier in the month.


Both will help to turn the airline’s fortunes around following its drop in annual pre-tax profits to £225m in the year to March 31.

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