BA and Qantas in merger talks

THE Irishmen at the head of two of the world’s largest airlines are reported to be in merger talks.

British Airways and Australian airline Qantas are said to be considering a merger that would create a company with about €18 billion in annual sales.

BA said the talks are aimed at creating a company listed in London and Sydney. The two airlines would retain their own brands.

NCB analyst Neil Glynn said the move would make sense. “I see it as being very early stages, but the companies have a very strong relationship,” he said. BA and Qantas were founder members of the Oneworld global airline grouping in 1998 and the British carrier owned an 18.25% stake in its ally between 1993 and 2004, when it sold up to focus on partnerships in Europe and North America.

The two airlines are discussing a combination after the Australian government indicated it would ease restrictions on the ownership of Qantas.

British Airways also said it remains in merger discussions with Spanish airline, Iberia.

Mr Glynn said the priority is likely to remain the Iberia talks and also an application for antitrust immunity for closer ties with American Airlines.

“There is no guarantee that any transaction will be forthcoming and a further announcement will be made in due course, if appropriate,” BA said.

Qantas was formed in 1920 and employs around 37,000 people and flies to 145 destinations in 37 countries.