10th Nov 2005 12:42
British Airways PLC10 November 2005 EYE DEAL British Airways and The Tussauds Group today (Thursday November10) signed amemorandum of understanding (MoU) which paves the way towards securing thelong term future of the British Airways London Eye. British Airways will sell its entire interests in the Eye including its onethird share and its outstanding loan to the company for £95 million. The airlineplans to continue its brand association with the attraction by extending itsfranchise agreement. Martin George, British Airways' commercial director said: "I am delighted thatwe have reached an agreement that paves the way towards securing the future ofthe Eye for generations to come. British Airways has supported the Eye fornearly a decade and will continue to do so with the extension of its franchiseagreement. "The deal will also enable us to continue to strengthen our balance sheet andfocus on our core business. "Tussauds has proven experience as the operator of the Eye and since its launchin 2000 has helped make the Eye the most popular paid for attraction in London.The company is committed to the future development and success of the Eye forthe benefit of the consumer and London's £6.6 billion tourism industry." Peter Phillipson, chief executive of The Tussauds Group said: "It has beeneveryone's objective to create a financially secure and long-term future for theLondon Eye and this deal will achieve this. "We believe that we have the operational experience through our city centreattractions such as Madame Tussauds; theme parks like Thorpe Park; and nationalhistoric treasures like Warwick Castle to continue to develop The Eye as an iconthat London and Londoners can remain proud of. "We are extremely excited about the prospect of taking the Eye forward anddeveloping this great cultural attraction. We plan to invest £50 million in theattraction over the next five years." ends November 10, 2005126/KG/05 Notes to editors: At 135metres high, the BA London Eye is the world's largest observation wheel.Since it opened in 2000, it has attracted 18 million visitors. The Eye has three equal shareholders: British Airways, The Tussauds Group andMarks Barfield Architects. The Eye was conceived and designed by Marks Barfield Architects and has won over40 awards for national and international tourism, outstanding architecturalquality and engineering achievement, including the People's Choice award in 2001and 2002. British Airways became involved in the London Eye in 1996. The attraction wasthe centrepiece of the millennium eve celebrations. Attached to the MoU is an exclusivity agreement. The book value of the debt iscurrently £175.2 million. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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