BA expects to sell 757s next winter, use A320s instead

By David Kaminski-Morrow

British Airways is expecting to sell its 11 mainline Boeing 757-200 aircraft during the next winter season, and replace them with Airbus A320s, rather than expand its OpenSkies operation.

Chief executive Willie Walsh, speaking after the airline disclosed its third-quarter results, said the decision had been taken "in principle" and that the carrier was "actively pursuing the sale" of the jets.

There would be a capacity reduction, he adds, because the 757s would be substituted with A320 jets.

"That may come through in the winter 2009-10 period, it's likely that we'd start that process during that period," says Walsh.

BA has not identified a buyer for the jets nor stated whether the aircraft would be sold to a passenger operator or converted to freighters.

But Walsh says the "opportunity to sell" the aircraft was one of the reasons behind the decision not to expand the OpenSkies transatlantic venture. Two of the 11 remaining 757s had been intended for release to OpenSkies, which already operates two ex-BA 757s as well as two 757s from former French carrier L'Avion.

OpenSkies was originally to expand to six aircraft by the end of this year. But Walsh says this plan was shelved in light of a review of the business' performance, the outlook for the industry, and the chance to sell the 757s.

"We'll hold OpenSkies at four aircraft this year," he says. "We don't have any plans to expand on that."

BA has previously set out plans to reduce capacity by 3% this winter and 1% in summer 2009, and Walsh indicates that further capacity cuts are likely but have yet to be quantified. He says, however, that BA is to reduce its London Gatwick fleet from 35 to 32 aircraft.