British Airways looks to acquire Iberia, Qantas
Merger of national airlines would create huge carrier
By Tom Stundza -- Purchasing, 12/2/2008 4:25:00 PM
British Airways, which is already in merger talks with Spain’s Iberia, announced today that it is in merger talks with Australia's Qantas Airways.
A merged BA-Qantas-Iberia would be one of the largest airlines in the world with $23 billion in annual sales and a dominant market share on routes across the North and South Atlantic as well as to Australia. The Times of London says the plan will be subject to approval by the Australian government. That’s because Qantas must remain 51% owned by Australian investors and the government has indicated that it is not willing to remove the restriction.
Qantas released a statement today confirming that it is “exploring a potential merger with British Airways plc via a dual-listed company structure.”
British Airways did not provide any reasoning for the prospective deal but the Associated Press says CEO Willie Walsh has long advocated industry consolidation, arguing that closer cooperation will help airlines cut costs in the current difficult economic climate.
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