BA denies KLM merger talks

British Airways has played down reports it was about to take its first step towards merging with Dutch rival KLM.

A weekend newspaper report said the airline was close to agreeing a passenger sharing deal with KLM.

The article added the move was a first step towards reviving merger talks between the two after original discussions collapsed 18 months ago and a deal could be struck within a year.

But BA dismissed the suggestion, commenting: ‘‘We are not in merger talks with KLM. However, as stated before, there have been over the past few months discussions between the two airlines about limited, short-term schedule co-ordination in the wake of the current crisis.

‘‘As and when there is something to announce we will do so through the normal channels.’’

The speculation over BA’s future comes just days after Richard Branson’s Brussels-based airline Virgin Express confirmed it was in merger talks with DAT, the successor to the bankrupt Sabena airline.

Both BA and KLM have suffered in the aftermath of the US terror attacks, cutting passenger capacity and slashing jobs.