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Competition for new longhaul aircraft

BA Press Release 17/10/06

British Airways has launched a competition for new longhaul aircraft by
issuing tender documents to aircraft and engine manufacturers.

The competition, called a request for proposal (RFP), is the first step in
a lengthy process before the airline makes a decision on fleet growth and
replacement for the next decade.

Airbus and Boeing, and engine manufacturers, Engine Alliance, General
Electric and Rolls Royce plus other key component suppliers, have been
invited to bid.

British Airways' chief executive, Willie Walsh, said: "For the past four
years, we have grown capacity by using our aircraft more efficiently. In
order to continue to grow our longhaul business we now need additional
longhaul aircraft. We remain committed to generating an economic return for
our shareholders.

"Launching the competition highlights the need for us to address our £2.1
billion pension deficit. It is a major blocker to growth and investment in
our business but I am confident we will resolve it.

"With a combination of firm orders and options, we are planning for both
growth and fleet replacement into the next decade. Environmental
performance will be one of the key criteria in our choice ensuring greater
fuel efficiency, reduced noise and emissions. The first aircraft to be
replaced are the 20 Boeing 747s and 14 Boeing 767s, which will be around 25
years old," he said.

Subject to the outcome of the RFP competition, orders are expected to be
placed during next year.

The aircraft being considered for the airline's longhaul fleet are the
Airbus A330, A350, A380 and Boeing 787, B777 and B747-8.

ends
October 17, 2006 104/LG/06

Notes to editors:
British Airways has 284 aircraft in its fleet of which 114 are longhaul
aircraft.

Its longhaul fleet comprises 57 Boeing 747-400s, 43 B777s (three B777-200A,
24 B777-200IGW and 16 B777-200ER) and 14 B767-300s.

Projected entry into service dates for the Airbus A380 is 2007, A350 XWB is
between 2012-2014 and B787 is 2008. There is no confirmed entry into
service date for the passenger version of the B747-800.

The current list prices for the aircraft being considered range from US$160
million to
US$ 316 million per aircraft.

A new generation medium sized wide body aircraft such as the Airbus 350XWB
or B787 is likely to have at least 30 per cent lower fuel burn and 30 per
cent lower NOx emissions per seat than a B767.

An A380 or B747-8 is likely to have at least 17 per cent lower fuel burn
per seat and 21 per cent lower NOx than a B747-400.

The A380 and B747-8 are expected to be noticeably quieter on arrival than
the B747-400.

Certain information included in this statement is forward-looking and
involves risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by the forward looking
statements.

Forward-looking statements include, without limitation, projections
relating to results of operations and financial conditions and the
Company's plans and objectives for future operations, including, without
limitation, expected future revenues, financing plans and expected
expenditures and divestments. All forward-looking statements in this
report are based upon information known to the Company on the date of this
report. The Company undertakes no obligation to publicly update or revise
any forward-looking statement, whether as a result of new information,
future events or otherwise.

It is not reasonably possible to itemise all of the many factors and
specific events that could cause the Company's forward looking statements
to be incorrect or that could otherwise have a material adverse effect on
the future operations or results of an airline operating in the global
economy. Information on some factors which could result in material
difference to the results is available in the Company's SEC filings,
including, without limitation the Company's Report on Form 20-F for the
year ended March 2006.

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Bartek · Guest

Jim Mason wrote: