Deutsche BA Confident About Parent Backing | Business| Economy and finance news from a German perspective | DW | 20.11.2001
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Deutsche BA Confident About Parent Backing

While Deutsche BA for the first time dismissed speculation over a sale of the airline, low-cost carrier Germania said it was near to reaching agreement on taking over British Airways' loss-making subsidiary.

Deutsche BA, Germany's second-largest airline, plans to overcome the current crisis in the aviation industry without outside help.

Chief executive Adrian Hunt said that contrary to speculation in the industry, parent company British Airways continues to support its German subsidiary.

"There are no plans at present either to close down or to sell Deutsche BA," Hunt said. This is the first time Hunt has commented publicly on the airline's situation following months of rumors in the industry.

But for the current year, the airline – the biggest rival of national carrier Deutsche Lufthansa – will post a loss for the tenth time in succession.

Meanwhile, German news weekly Focus reported that the new low-cost airline Germania is interested in acquiring Deutsche BA.

"We are in intensive negotiations with British Airways," the magazine quoted Germania chief executive Mustafa Muscati as saying. Only a few details remained unresolved and an agreement could be reached in the foreseeable future, he added.

Germania planned to establish itself on the German market as a nationwide cut-price airline without on-board service by taking over Deutsche BA. The name Deutsche BA would initially be preserved, Muscati told Focus. British Airways declined to comment.

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