Qantas and BA Merger Enables Airlines to Cut Costs
Proposed merger between British Airways and Qantas Airways would help the combined carrier win larger discounts from Airbus SAS and Boeing Co.
Qantas, BA and other airlines are under pressure to cut costs after the global recession drove down worldwide airline passenger traffic in September and October, the first decline since 2003. The two airlines would become the largest customer for the Boeing 787 and the second-biggest customer for the Airbus A380, the flagship models for both manufacturers.
The two airlines are in talks on a combination that would create a carrier with 500 planes and more than 71 million passengers a year. They already cooperate on flights between London and Sydney and have permission to jointly set prices on the so-called Kangaroo route. They are also both members of the airline group Oneworld.
Qantas Chief Executive Officer Alan Joyce said in an interview last week that in any possible merger his carrier would prefer to maintain existing brands, similar to what was done at Air France-KLM when the French company bought KLM Royal Dutch Airlines NV in 2004.
Qantas Chief Executive Officer Alan Joyce said in an interview last week that in any possible merger his carrier would prefer to maintain existing brands, similar to what was done at Air France-KLM when the French company bought KLM Royal Dutch Airlines NV in 2004.
Karen
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