Officials insist that Qantas must stay Australian-owned

A merger of Qantas and British Airways must involve control of the “Flying Kangaroo” remaining in Australia, officials in the country insisted today, as Qantas shares surged on hopes a deal would see it emerge a stronger competitor to big regional rivals like Singapore Airlines.

Australian government and union officials greeted with caution news of talks between BA and Qantas Airways – dubbed the Flying Kangaroo because of its bright red logo depicting the hopping marsupial that is indigenous to Australia.