BA asks Digby to step down over conflict of interest with Flybe

LORD Jones of Birmingham has been asked by British Airways to step down from his advisory role with the airline following his decision to join the board of low cost airline Flybe, reports have said.

The UK flag-carrier is believed to have told him it believes there may be a potential conflict of interests because of his new role with Flybe.

BA has been exposed to the UK domestic and European short haul sector – Flybe’s principal operations zone – following the decision by its parent, International Airlines Group, to purchase low cost airline bmi.

The Financial Times said BA had originally told Lord Jones it did not believe his offer of a place on the board of Flybe would pose a problem.

Lord Jones was quoted as saying BA now felt the situation was “too close for comfort”.

The former Trade Minister’s role at BA had been set to finish at the end of this year.

IAG, which also owns the Iberia airline, completed the takeover of bmi from Lufthansa last month in an undisclosed deal. However, it is thought the price was significantly below the £172.5m asking price due to bmi losses.

The takeover will see the main bmi airline integrated into BA. IAG had not wanted the bmi Baby or regional operations but these came as part of the deal.