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BRITISH AIRWAYS TO TAKE A STAKE IN TAT EUROPEAN AIRLINES

 BRITISH AIRWAYS TO TAKE A STAKE IN TAT EUROPEAN AIRLINES
 NEW YORK, Sept. 24 /PRNewswire/ -- British Airways (ADS-NYSE: BAB)


today announced it had entered into a conditional agreement to buy a shareholding in TAT European Airlines from the TAT Group.
 The airline will acquire 49.9 percent of TAT European Airlines immediately on completion of the necessary formalities and following receipt of the required regulatory approvals. The purchase price of 17.25 million pounds sterling (approximately $30 million) is subject to adjustment on completion which is expected to be in January, 1993.
 British Airways has also agreed a conditional option to acquire the remaining 50.1 percent on or before April 1, 1997, and the TAT Group also has a conditional option to require British Airways to acquire the remainder on that date.
 TAT European Airlines, founded in 1968, is France's leading independent airline. Its administrative headquarters is in Tours, in the Loire Valley, southwest of Paris.
 TAT serves 37 destinations, including an extensive network of internal French services, linking 32 destinations. This domestic network is based mainly at Orly Airport, Paris, the capital's main domestic airport, where TAT has 20 percent of the slots, with a secondary hub at Lyon.
 TAT uses Charles de Gaulle Airport in Paris as a base for international services. International destinations include London's Gatwick Airport, which it serves three times a day from Charles de Gaulle and 10 times a week from Lyons, providing opportunities to link with British Airways' own network from Gatwick serving 35 destinations around the world.
 During the summer season TAT operates scheduled services from Stansted to five destinations in mainland France and the island of Corsica.
 TAT also flies from Charles de Gaulle Airport to Bergamo, Copenhagen and Munich.
 Last year TAT carried a total of three million passengers. Almost three quarters of a million passengers were carried on its own scheduled services with the remainder on scheduled services operated on behalf of other airlines.
 The airline owns or leases a fleet of 54 aircraft. They include 10 Fokker 100s, 19 Fokker 28s, a mix of 12 ATR 42s and 72s and five Boeing 737-200s. TAT employs 1,520 staff, including some 345 pilots.
 This investment is another step towards British Airways policy of creating a global airline, with a significant presence in all major geographic markets. This is particularly important in Europe, with the package of deregulation measures agreed by the Council of Ministers in June effectively expanding British Airways' home base from the UK itself to the European Community states.
 Progress in Europe has already been made - with the acquisition in Germany earlier this year of a 49 percent holding in Delta Air, now renamed Deutsche BA.
 This latest investment gives British Airways a presence in the three largest European air transport markets - the UK, Germany and France. France is the second largest economy in Europe with TAT's operating base in Paris centered on a region with a gross domestic product 50 percent greater than that of Southeast England.
 -0- 9/24/92
 /CONTACT: Honor Verrier, 718-397-4729, or, Sandy Gardiner, 718-397-4725, both of British Airways/
 (BAB) CO: British Airways; TAT Group ST: New York IN: AIR SU: TNM


LR -- NY022 -- 2992 09/24/92 10:21 EDT
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Publication:PR Newswire
Date:Sep 24, 1992
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