"British Airways confirms that it is exploring a potential merger with Qantas Airways via a dual-listed structure," the company said.
The announcement comes as airlines around the world look to strike deals to help cut costs amid high fuel prices and contracting global economies. British Airways is already in advanced merger talks with Spain's Iberia Lineas Aereas de Espana SA and noted Tuesday that those talks continue. On Monday, Ireland's Ryanair Holdings plc made a bid for domestic peer Aer Lingus Group plc. The approach, which valued the target at about €680 million ($863.6 million), was quickly rejected.
In making its play for Qantas, BA has proposed a dual-stock listing to address the strict regulations the Australian government has placed on the domestic airline industry. The limits prohibit foreign airlines from holding more than 35% of an Australian airline and keep any single foreign investor from owning more than 25%. Still, the government this month pledged to reconsider the guidelines and signaled that it might allow a foreign carrier to own up to 49% of Qantas. - Andrew Bulkeley
Comments
By making a good deal with the Spanish airways, both the companies can get good revenue in terms of traffic and money both. Although the rates are going to be slashed down very soon, but larger crowd will pave way for bigger revenue.