Waiver of dividends
The British Airways Employee Benefits Trust (Jersey) Limited, which holds British Airways shares for the purpose of satisfying awards and options granted to employees under the Company’s employee share schemes, has waived its rights to dividend. The Trustee does not vote the shares that it holds. At March 31, 2008 there were 2,087,147 shares held in the Trust.
Going concern
After making enquiries, the directors have a reasonable expectation that the Company has adequate resources to continue operating for the foreseeable future. For this reason, the going concern basis has been adopted in preparing the accounts.
Payment policy
Information on the policy and practice of the Company regarding payment of the Company’s creditors can be found within the corporate responsibility report and forms part of this Directors’ report.
Impact of change of control
The following significant agreements contain provisions entitling the counterparties to exercise termination or other rights in the event of a change of control of the Company:
- All of the Company’s share schemes contain provisions relating to a change in control. Other than the Performance Share Plan, which is subject to the satisfaction of any performance conditions at that time, all outstanding options would normally vest and become exercisable on a change of control;
- Joint business agreement with Iberia, which coordinates schedules, marketing, sales, freight, pricing and customer service activities;
- Codeshare agreements with American Airlines, Cathay Pacific, Iberia, bmi, Qantas and Aer Lingus; and
- Contracts to sell miles to Alaska Airlines, American Airlines, Lloyds TSB and Tesco.
Neither of the executive directors’ service contracts provides for compensation to be paid in the event of change of control of the Company.
Substantial interests in shares
The Company has been notified pursuant to the DTRs of the following interests in 3 per cent or more of the Company’s issued ordinary shares as at May 15, 2008:
| Name of shareholder | Percentage of holding | Direct % | Indirect % |
|---|---|---|---|
| INVESCO plc | 11.05 | Nil | 11.05 |
| Standard Life plc | 9.07 | 7.69 | 1.38 |
| Barclays PLC | 6.90 | 6.90 | Nil |
| AMVESCAP Plc | 6.74 | Nil | 6.74 |
| AXA S.A. | 4.85 | 0.75 | 4.10 |
| Legal & General Group Plc | 4.07 | 4.07 | Nil |