BA confirms merger talks with Qantas
British Airways has issued a statement in response to recent media speculation about a merger with Qantas.
BA is still continuing discussions with Iberia and also wants a tie-up with American Airlines.
The airline confirmed it is exploring a potential merger with Qantas “via a dual-listed company structure”.
The combined revenues would be £15.7 billion. BA has 250 aircraft, while Qantas has 224, raising speculation about potential cost savings and job losses.
BA and Qantas already co-operate on the ‘Kangaroo Route’ between the UK and Australia.
“The discussions between British Airways and Iberia are continuing,” said the statement.
“There is no guarantee that any transaction will be forthcoming and a further announcement will be made in due course, if appropriate.”
The Qantas announcement came after the Australian government indicated it might relax the rules on foreign ownership.
Under current Australian law, Qantas must be at least 51% Australian-owned.
Furthermore, any individual foreign airline can only take up to a 25% stake and only 35% may be owned by foreign airlines.
But earlier this week Australian transport minister Anthony Albanese proposed that that the rules should be changed so that 49% may be owned by a single foreign airline.
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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