The company has been losing money for BA

In a statement, BA said it was investing �25m ($41m) in DBA, and would underwrite its fleet of 16 aircraft for one year as part the deal with Intro Verwaltungsgesellschaft.

In return, BA will receive 25% of DBA's profits or disposal proceeds until June 2006.

BA had attempted to sell the unit, formerly called Deutsche BA, to budget airline Easyjet, but the deal fell through in March when the carrier decided investing in Germany's troubled aviation market was too risky.

Roger Maynard, chairman of DBA, said: "DBA does not fit with our core full service network strategy and the new owners will be able to give the business the commercial focus it needs.

"This deal is a sensible one in the current climate.

Back in profit

"It ends our exposure to German losses yet give us the benefit of a share in any profits that the company makes in the next three years".

The deal will not affect any of DBA's existing flights.

The company currently serves seven German cities and four international routes.

It flies Berlin to Cologne, Dusseldorf and Stuttgart; Munich to Berlin, Cologne, Dusseldorf and Hamburg; Berlin to Nice; Hamburg to Nice; Stuttgart to Nice and Munich to Malaga.

The sale will go ahead on 1 July.

British Airways announced last month that it was back in profit after a fierce cost-cutting programme.

BA made a �135m ($219m) profit in the year to 31 March, compared with a �200m loss in the previous year.