British Airways (BA) has sold its 18.25 per cent shareholding in Australian airline Qantas.
BA announced that cash from the deal, valued at around £425m, would be used to reduce its debt – currently standing at £5.6bn.
Rod Eddington, chief executive, said: “We believe it was in our best interests to sell our shares to pay down our debt and continue to strengthen our balance sheet.”
BA has said the sale has no impact on the existing business relationship between the two airlines and is not linked to the joint services agreement.
BA acquired the Quantas stake in 1993 for £304m.
