BA scraps bond issue after lack of interest

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British Airways has dropped plans for a bond issue which was to be linked with its newly-created subsidiary, British Airways Limited, as well as slots at London Heathrow.

The airline had said on 9 July that the terms and timing of the bonds would depend on investor feedback and market conditions.

Having assessed these conditions, BA says it found a "lack of demand" for the bonds at a price which would compare with other financing alternatives.

Parent company International Airlines Group says it has therefore "decided not to progress" with the issue.

BA had recently established British Airways Limited as a subsidiary encompassing its premium London City-New York transatlantic operation, which has also entered a joint pact with BA regarding sales, ticketing and slots at City and Heathrow.