ABSTRACT
This chapter focuses on the financial aspects of airline privatisation. A flotation is only possible where there is a strong domestic equity market, and the local stock market regulations can be complied with by the airline. The dramatic weakening of sterling against the dollar after 1982 helped British Airways' recovery, while sealing the fate of Laker Airways. As with Qantas, the Kenya Airways privatisation involved both a trade sale and a public offering of shares. The privatisation of the Spanish national carrier, Iberia, was originally contemplated in the mid-1990s, but only in November 1999 did it look like becoming reality. Air France-KLM were authorised to monitor and control shareholders, and if necessary require them to sell their shares if their Europe operating licence and traffic rights were threatened. The national carrier of Sri Lanka was 'privatised' in March 1998 by means of a trade sale to the Middle East airline, Emirates Airlines.
