British Airways is arranging for the disposal of 34 of its 53 Boeing 757s to a subsidiary of the aircraft manufacturer.

The 757s, which typically seat 180 passengers, are expected to be converted by Boeing into freighters for express parcel carrier DHL.

Smaller aircraft will replace the 757s with some of the capacity being transferred to 100 seat jets. Negotiations are still underway for these new jets, with an announcement due shortly.

This marks an important step in the British Airways fleet strategy, first announced in August 1998, to modernise the carrier`s fleet, increase yields and reduce capacity.

The new fleet and network strategy will allow BA to emerge from current difficult market conditions with lower costs and a young fleet focused on the most profitable sections of the market.

The disposal of these aircraft to the cargo sector will also reduce overall industry passenger capacity.

Deliveries of Boeing 757s to Boeing will begin in July 2000 and continue until March 2003. All British Airways` remaining Boeing 757s have modern Rolls-Royce RB211-535E4 engines.

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