British Airways Plc. plans to sell its A$1.12 billion ($773 million) stake in Australia's Qantas Airways Ltd. in the next two days to cut debt and take advantage of future consolidation in Europe.

Europe's second-biggest airline, which has undertaken the most radical restructuring among its peers in the past three years, said the sale of the 18.25 percent stake would have no effect on the business relationship between the two carriers.

"We now believe it is in our best interests to sell our shares to pay down our debt and continue to strengthen our balance sheet," Chief Executive Road Eddington said in a statement. "A strong balance sheet will place British Airways in a robust position for any future European consolidation."

BA told shareholders in July last year its close ties with Spanish airline Iberia would be at the heart of any consolidation in Europe. BA owns about 9 percent of Iberia.

It is unlikely a rival airline such as Singapore Airlines Ltd. would be interested in buying the BA stake because alliances have negated the need for airlines to take equity stakes in other carriers, investors said.

BA said the sale of the Qantas stake, which has reaped the carrier A$600 million in dividends over the past 11 years, would be an underwritten offering.