British Airways has announced it is to end its UK franchise agreement with GB Airways from March 2008 and plans to start services on some of the routes operated under the franchise.
GB Airways earlier agreed to be bought by budget airline Easyjet.
"UK franchises have outlived their purpose. Easyjet has made an offer to buy GB Airways and this has enabled us to end the franchise agreement early. We had an option to buy GB Airways but we rejected it," British Airways chief executive Willie Walsh said.