Will British Airways sell its OpenSkies subsidiary?
A report from Reuters, citing “a person familiar with the matter,” says that British Airways has retained an investment bank to seek out a purchaser for BA’s OpenSkies subsidiary. OpenSkies operates four 757s on routes between Amsterdam-New York and Paris-New York, providing an upscale, two-class in-flight service aimed at business travelers. Earlier this year, OpenSkies acquired the French all-business-class airline L’Avion, which has since been merged into its operations. BA is also planning to launch a new all-business-class subsidiary later this year, operating between London’s close-in City Airport and New York. The Reuters report said the plan to sell OpenSkies is part of a larger effort by BA to raise about $1 billion in new capital to see it through the ongoing worldwide financial crisis. The story noted that BA has raised $574 million from a new convertible bond offering, but needs even more capital – and continued cost-cutting – to last out the economic crisis as its lucrativ
