BA is believed to be looking for £100m for Go, its low-cost subsidiary, but bids are expected to be in the range of £70m to £90m. Goldman Sachs is advising on the sale, which is thought to be in its final stages.
Groups interested in acquiring the airline include venture capital group 3i and a consortium which includes Barclays Private Equity and Electra Partners.
Dutch national airline, KLM, is also said to be considering tabling a bid for the group. The Dutch group which owns low cost rival Buzz, is conducting a study on its options in the low-cost sector. KLM spokesman Bart Koster told Reuters: “(Buying Go) is an interesting option, but the study includes all options.” It is believed that a KLM bid would be made with a private equity house also.
Last week Barclays Private Equity agreed to sell its 65 per cent shareholding in Luton airport in a deal which is believed to be worth £82m.