| Journal: TWUK | Section: |
| Title: | Issue Date: 08/05/00 |
| Author: | Page Number: 3 |
| Copyright: Other |
Go confirms possible spin-off to raise funds
BRITISH Airways’ low-cost subsidiary Go has confirmed industry speculation that it may be spun off.Several approaches have already been made by external parties interested in investing in Go, according to a spokesman for the low-cost airline.
The move would aim to raise capital to fuel Go’s expansion. The low-cost airline is estimated to be worth £400m.
A Go spokesman said: “BA may well consider spinning off Go. There certainly have been plenty of bids made for the airline.”
He confirmed that options included a flotation or a part sale to a venture capital group or even another airline.
“There are plenty of options open,” he added.
The Stansted-based airline faces losses of over £10m for 1999-2000. Go hopes to break even by March 31 next year.
If the sell-off goes ahead, it will be one of the first major tasks to be overseen by new BAchief executive Rod Eddington, who replaced Bob Ayling earlier this month (Travel Weekly May 1).
Eddington, who took up his new role at BA on May 1, also faces the task of turning around £250m in losses at BA and boosting the battered morale of staff.