BWA Bwa Group

RNS Number:7484O
BWA Group PLC
14 December 2001


                           BRITISH WORLD AIRLINES 

                 BRITISH WORLD AIRLINES TO GO INTO RECEIVERSHIP 

After some three weeks of intensive efforts to find a solution to its short-term
cash flow problems, the Airline Board has today reluctantly taken the decision 
to request the appointment of a receiver.

Due to the current extremely poor trading conditions in the aviation sector, 
exacerbated by the effects of the September 11 events in New York, the Board 
were conscious of the fact that the short-term prospects of continuing 
operations were becoming increasingly difficult, although its Summer 2002 
programme was robust and profitable and would have called for a major fleet 
expansion. Unfortunately, the Group recently suffered bad debts close to one 
million pounds after the collapse of two of its customers. It is ironic that 
only yesterday in Parliament, the Government announced a package of aid 
available to assist airlines through the current difficult conditions.

Attempts have been made over the last three weeks to formulate a recovery 
programme and it was believed that the company had obtained the support of its 
major lessors and creditors. However, on Thursday, 13 December, BAE SYSTEMS 
decided that they could not continue to support the company and issued 
termination notices for their two leased aircraft, following which the other 
lessors decided that they had no choice but to follow the same course of action.
Every effort was made during the course of Thursday to ensure that the interests
of its customers were met and that passengers were not inconvenienced. Every 
aircraft completed its flying programme and all were returned to their bases.

The Board of British World Airlines would like to pay particular tribute to the 
staff who have been extremely supportive of the company during very difficult 
and testing times. The employees of British World Airlines have been a great 
credit to the industry and have been recognised for their professional 
dedication to the customer base. The collapse of the airline is a personal 
tragedy for all involved, particularly in the build-up to what should be the 
festive season.

The company has had a rich history dating back to 1946 when it was founded as 
Silver City Airways and was one of the longest surviving independent airlines in
the UK.

We wish all of our staff and friends in aviation well in what is a very 
difficult time for the whole aviation industry.

For further information please contact the following:

Chris Bakhurst Managing Director British World Airlines Ltd    01702 354435 
Malcolm Ginsberg 01707 665454 / 07973 210631 company spokesman

Special Press Note: At this point of time the company employs 320 people 
including approximately 50 at Aberdeen. BWA operate six 68 seat BAe ATP, three 
Boeing 148 seat 737-300 and a single Boeing 233 seat 757-200.  British World 
headquarters are at London Southend Airport. The airline specialised in 
supplying back-up aircraft to other carriers including British Airways, Air 
France and EasyJet as well as its own programme of charters and special one-off 
operations. AoC services were also provided. It was formerly known (pre 1993) as
British Air Ferries (BAF)

PLEASE NOTE AN E-EMAIL VERSION IS AVAILABLE 
Requests to malcolm@ginsberg.co.uk

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