Qantas and British Airways (BA) have been in merger talks, according to the companies. The possible merger would result in an A$8bn carrier, with both airlines maintaining their names and branding.
“In response to recent media speculation, British Airways Plc confirms that it is exploring a potential merger with Qantas Airways Limited via a dual-listed company structure,” BA said in a statement.
The merger discussion came as no surprise to analysts, reported the ABC, who said the current airline environment required the two companies to stay competitive.
“Qantas has to change, move with the times to survive,” said Brent Mitchell, head of research at Shaw Stockbroking.
“Certainly the competing airlines such as Emirates and Singapore Airlines have both different ownership structures and different operating cost basis and Qantas needs to adapt to be able to compete with those certainly on the global long haul routes.”
An avenue for the discussion was opened when the Australian government yesterday proposed a removal of the 25 per cent foreign ownership limit on Qantas.
If the merger went ahead, it is expected it would give the combined company dominance in the Australia-Asia-UK flight route.
