British Airways Aims to Raise Funds through Bonds

British Airways, a UK-based airline company, is looking for investors to input around £250 million, by purchasing its secured debt instruments.

The airline is offering corporate bonds to raise funds, and the instruments will be secured against some of its London Heathrow Airport slots.

International Airlines Group (IAG), the UK-based parent company of British Airways, has previously reported that it is planning to spend €1.6 billion in 2012 on proposed developments, and €4.95 billion on renewing its fleet, including taking delivery of its first Airbus 380 and Boeing Dreamliner B787 aircraft in 2013.

In its statement, IAG, said, ‘The final terms and timing of the issuance will be based on investor feedback and market conditions following an investor road show.

Bond holders will have the benefit of security over the shares and assets of a wholly owned subsidiary of British Airways called British Airways (BA) Limited. The assets include up to 31 daily slot pairs at London Heathrow airport.

British Airways (BA) Limited has 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 airports.

It is proposed that the bonds will be issued through a special purpose entity incorporated for this purpose.’

The issue will be arranged by France-based banking institution, BNP Paribas, and the 31 slots owned by the airline at London Heathrow Airport have been valued at around £454 million by corporate financial ratings agency, Moody’s.

British Airways Launches Jubilee Jumbo Aircraft

British Airways, a UK-based airline company, is featuring a special emblem celebrating the Queen’s Diamond Jubilee on one of its fleet of Boeing 747 aircraft.

11-year-old, Katherine Dewar, designed the celebratory emblem, she was the winner of a competition organised by the UK children’s television program, Blue Peter. The emblem will be part of the aircraft’s livery along with a message, ‘Congratulations, Celebrating Queen Elizabeth II’s Diamond Jubilee’.

Katherine Dewar said, ‘Since winning the competition, its been like a dream come true to see my design in so many different places around the UK but I never expected to see it on a huge jumbo plane! I love going on holiday to Florida and hope the next time I do I’ll be lucky enough to fly on this plane so I can look out the window at my design!’

The airline pilot, Captain Mark Mannering-Smith, said, ‘As the national flag carrier I can’t think of anything more fitting than British Airways carrying a message of congratulations to Her Majesty around the world.’

Air passengers arriving at London airports over the Jubilee weekend, which is from June 2 to 5, 2012, will also be hearing congratulatory messages from the aircraft pilots, to celebrate the occasion.

For customers accessing the British Airways’ Heathrow lounges, the airline will be serving a regal afternoon tea, which will include a traditional British tea menu.

The Terminal 5 Elemis Spa is also offering Jubilee treatments for British Airways’ First, Club World and Gold Executive Club members.