BA to sell regional ops of BA Connect to Flybe; to hold 15 pct of Flybe
LONDON (AFX) - British Airways (LSE: BAY.L - news) said it agreed to sell the regional operation of its BA Connect unit to Flybe, and that it will take a 15 pct stake in the low-cost carrier.

BA said it will take an impairment charge of 106 mln stg on the disposal, with no further material gain or loss anticipated. No other financial details were reported.

The transaction excludes BA Connect's services out of London City Airport and the Manchester (MNCS.OB - news) -New York route, BA said in a statement.

'Point-to-point regional operations are not a strategic part of our business and we believe that such activities are better undertaken by a regional low-cost airline,' said BA CEO Willie Walsh.

'We do not see any prospect of profitability (for BA Connect) in its current form.'

BA Connect's London City services will, however, complement BA's mainline business at Heathrow, he added.

Interesting; we may see some significant and exciting changes out of LCY. Longhaul even.....?