British Airways has signed an agreement today, Monday 2 June, 2003, to sell its wholly owned German subsidiary dba (formerly Deutsche BA) to Intro Verwaltungsgesellschaft mbH, the Nuremburg-based aviation consultancy and investment company.
Intro will buy the entire share capital of dba for €1. As part of the transaction,
British Airways will invest up to £25 million (€35 million) in dba and will also underwrite the German carrier’s fleet of 16 aircraft for one year, at a cost of £2 million (€3 million) per month.
In exchange, British Airways will receive 25 per cent of any dba profits, or 25 per cent of any profit on disposal of dba, up to June 2006.
Roger Maynard, chairman of dba and British Airways’ director of investments and joint ventures, said: “Dba does not fit with our core full service network strategy and the new owners will be able to give the business the commercial focus it needs. The people in dba have done a great job in carving an important niche in the German domestic market with an operational performance second to none. I wish them well.
“This deal is a sensible one in the current climate. It ends our exposure to German losses yet gives us the benefit of a share in any profits that the company makes in the next three years.
“There are no changes to dba’s flights, as a result of the change in ownership, and for customers and staff it is very much business as usual.”
The sale transaction will be completed by July 1 2003.
Intro was advised by Barons Financial Services of Geneva and London.