British Airways

11 Aug 1999

BRITISH AIRWAYS AGREES MAJOR OUTSOURCING DEAL

BRITISH AIRWAYS AGREES MAJOR OUTSOURCING DEAL

British Airways Plc was recently advised by Simmons & Simmons on the outsourcing to BAX Global of the provision and management of engineering stores and logistics services relating to aircraft parts with a value of approximately £500 million. The contract was signed on 30 June 1999.

The complex deal involves highly regulated operations which deliver vital services to support aircraft maintenance, and both performance and continuity of the services are essential to the core business of the airline. The operations were transferred to a special purpose vehicle established for the deal and financed by BAX Global.

The Simmons & Simmons team was led by partner Ken Woffenden (Corporate) and Adrian Kent (Commercial), and included Fiona Wozniak (Commercial), Jaya Gupta (Corporate), partner Nick Fisher (Banking and Capital Markets), partner Mark Hewland (Employment), Trevor Garrood (Property) and Alison Courtier (Tax).

Ken Woffenden, partner, Corporate, commented:

"We are very pleased to have acted for British Airways on such a significant and complex project. This has been an important step in the development of our relationship with them."

BAX Global were advised by Eversheds. The team was led by partner Ros Kellaway and also included Bruce Gripton, Felicity Wooldridge, Tom Daltry and Suzanne Mercer of Eversheds and Kris Ashman, in-house lawyer at BAX Global.

ENDS Notes for editors:

1. Simmons & Simmons is worldclass law firm with offices in London, Paris, Brussels, Düsseldorf, Lisbon, Milan, Rome, Madrid, Abu Dhabi, Hong Kong, Shanghai and New York with over 1,400 staff worldwide. For further information on Simmons & Simmons please visit our website at www.simmons-simmons.com.

2. Simmons & Simmons has extensive experience in outsourcing deals and other substantial and complex projects for both the public and private sectors, including under the PFI.

3. Simmons & Simmons has developed a significant aviation practice (including regulatory work) in recent years drawing on its considerable experience in the travel, rail and asset finance sectors. Significant matters include advising eight major European airlines in relation to their complaint to the European Commission in respect of an Italian decree (the Burlando Decree) concerning the distribution of air traffic at Milan's Linate and Malpensa airports; advising Carlson UK on the leasing and aviation aspects of the merger of a fleet of Carlson/Caledonian and Thomas Cook/Flying Colours aircraft; and The Future Strategic Tanker Aircraft project with a capital value in the region of £2.5billion (which is the Ministry of Defences' largest PFI project to date). For further information, please contact: