British Airways announces bond issue

British Airways, a subsidiary of Anglo-Spanish outfit International Consolidated Airlines Group, has decided to go into the bond market.

While announcing the issue of sterling-secured bonds, the company says it will wait for investor feedback before announcing the timing and terms of the offer.

Bondholders will have the benefit of security over a wholly-owned subsidiary of British Airways called British Airways Limited. The assets include up to 31 daily slot pairs at London Heathrow airport.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

British Airways Limited has also been established as the licensed operator of scheduled services between London City airport and New York JFK airport. It has entered into a joint operation with British Airways with respect to sales, booking, ticketing and slots at London City and London Heathrow.

BS