£110 million GO sale agreed

British Airways has today announced the sale of its no-frills subsidiary Go Fly Limited to 3i, in a deal worth up to £110m.

Rod Eddington, British Airways’ Chief Executive, said: “The deal represents an excellent return on our initial £25 million investment in the airline three years ago. Go is an excellent airline with a fine management and workforce. As a no-frills operator, however, it simply does not fit with our full-service strategy. I am sure Barbara Cassani and her team will continue to grow this exciting business into the future.”

On completion British Airways will receive cash consideration of £80m, in addition to £20m of vendor loan notes and a potential deferred payment of £10m in the event of a subsequent sale of Go by 3i within five years.

Barbara Cassani, Go’s Chief Executive, said : “ Over the three years we have built a strong business with low prices and great service. I am delighted that the people who have made Go such a success will now co-own the airline.”