BA kicked out of top FTSE index

British Airways may be heading for more problems if the Iraqi conflict intensifies

LONDON, England -- British Airways is set to be kicked out of the prestigious FTSE 100 Index for the first time in its history as a private company.

Along with EMI and International Power, BA is set to be demoted in the latest quarterly reshuffle of Britain's biggest plcs.

Although not confirmed until Wednesday, the decision of who goes and who stays

is based on Tuesday night's closing prices, the UK's Press Association says.

Demotion rounds off almost to the day a brutal year for BA, which axed jobs, capacity and routes as it struggled to cope with a dive in demand.

The slowing global economy and aftermath of September 11 meant sales fell away and profits collapsed.

In May it unveiled losses of £200 million -- its worst results and first full-year losses since it was privatised 15 years ago.

Its share price has reflected the dramatic change in the group's fortunes. On the day of the attacks on the World Trade Center and Pentagon, BA's stock dived 21% to 208p.

Over the entire year, the shares have collapsed by almost 49%. They

closed up 31/4p at 135p on Tuesday, giving it a value of £1.46 billion, but not enough to save BA from demotion.