Washington, D.C. 20549

                        REPORT OF FOREIGN PRIVATE ISSUER

                FURNISHED PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
                       THE SECURITIES EXCHANGE ACT OF 1934

                                3 November 2006

                               BRITISH AIRWAYS Plc
                               (Registrant's Name)

                                 Waterside HBA3,
                                   PO Box 365
                              Harmondsworth UB7 0GB
                                 United Kingdom

Indicate by check mark whether the registrant  files or will file annual reports
under cover of Form 20-F or Form 40-F.

                    Form 20-F   X             Form 40-F

Indicate by check mark if the  registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule101(b)(1)

Note:  Regulation  S-T Rule  101(b)(1) only permits the submission in paper of a
Form 6-K if submitted  solely to provide an attached  annual  report to security

Indicate by check mark if the  registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7)

Note:  Regulation  S-T Rule  101(b)(7) only permits the submission in paper of a
Form 6-K if submitted to furnish a report or other  document that the registrant
foreign  private  issuer  must  furnish  and make  public  under the laws of the
jurisdiction  in which the  registrant  is  incorporated,  domiciled  or legally
organised  (the  registrant's  "home  country"),  or under the rules of the home
country exchange on which the registrant's securities are traded, as long as the
report or other document is not a press  release,  is not required to be and has
not been distributed to the registrant's  security holders, and, if discussing a
material  event,  has already been the subject of a Form 6-K submission or other
Commission filing on EDGAR.

Indicate by check mark whether by furnishing the  information  contained in this
Form,  the  registrant  is  also  thereby  furnishing  the  information  to  the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

                             Yes              No   X

If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):


1. Proposed Sale of BA Connect


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorised.

                                             BRITISH AIRWAYS Plc

                                             By:   /s/_________________________
                                                   Name: Alan Buchanan
                                                   Title:Company Secretary
                                                   Date  3 November 2006

                                INDEX TO EXHIBITS

Exhibit No.                 Description

1.                          Proposed Sale of BA Connect


British Airways announced today that it has reached agreement in principle to
sell the regional operation of its subsidiary airline BA Connect to Flybe.

BA Connect also operates from London City Airport and between Manchester and New
York. These services will not form part of the proposed sale nor will the
regional ground handling business, British Airways Regional Ltd.

Willie Walsh, British Airways chief executive said: "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.

"Despite the best efforts of the entire team at BA Connect, we do not see any
prospect of profitability in its current form.

"The proposed sale to Flybe provides the best opportunity to secure the
long-term future for the many dedicated staff in BA Connect.  British Airways
will have a 15 per cent investment in Flybe on completion of the disposal.

"London City services complement our mainline business at Heathrow. For this
reason they are not included in the proposed sale."

It is envisaged that once the sale of the regional business of BA Connect to
Flybe is completed, there will be a transition period until the start of the
summer schedule on March 25, 2007 while the handover of responsibilities is


November 3, 2006

Notes to editors

The proposed transaction is subject to a number of conditions including board
approval, documentation and due diligence.

British Airways announced a write down of GBP106 million of its investment in BA
Connect.  There is not expected to be a further material profit or loss on

BA Connect, based in Manchester, employs 1900 staff and operates 52 routes from
13 UK regional airports. The airline is expected to carry 3.5 million passengers
on regional services in 2006/07.

Flybe, based in Exeter, employs 1800 staff in the UK regions and operates 101
routes from 21 UK regional airports. The airline is expected to carry 6 million
passengers in 2006/07.

Certain information included in these statements is forward-looking and involves
risks and uncertainties that could cause actual results to differ materially
from those expressed or implied by the forward looking statements.

Forward-looking statements include, without limitation, projections relating to
results of operations and financial conditions and the Company's plans and
objectives for future operations, including, without limitation, discussions of
the Company's Business Plan programs, expected future revenues, financing plans
and expected expenditures and divestments. All forward-looking statements in
this report are based upon information known to the Company on the date of this
report. The Company undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future events
or otherwise.

It is not reasonably possible to itemize all of the many factors and specific
events that could cause the Company's forward looking statements to be incorrect
or that could otherwise have a material adverse effect on the future operations
or results of an airline operating in the global economy. Information on some
factors which could result in material difference to the results is available in
the Company's SEC filings, including, without limitation the Company's Report on
Form 20-F for the year ended March 2006.