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BA is in merger talks with Qantas BA is in merger talks with Qantas
(10 minutes later)
British Airways has said that it is exploring a potential merger with the Australian flag-carrier Qantas Airways.British Airways has said that it is exploring a potential merger with the Australian flag-carrier Qantas Airways.
BA warned there was "no guarantee that any transaction will be forthcoming".BA warned there was "no guarantee that any transaction will be forthcoming".
In a statement, BA said that the merger would be through the creation of a dual-listed company, so it would be listed in London and Australia.In a statement, BA said that the merger would be through the creation of a dual-listed company, so it would be listed in London and Australia.
It follows indications from the Australian government earlier in the day that it may be prepared to relax the rules on foreign ownership.It follows indications from the Australian government earlier in the day that it may be prepared to relax the rules on foreign ownership.
BA said that its discussions with the Spanish flag-carrier Iberia are also still continuing. Under current Australian law, Qantas must be at least 51% Australian-owned.
Any individual foreign airline can only own up to 25% of it and only a total of 35% may be owned by foreign airlines.
Transport Minister Anthony Albanese proposed earlier on Tuesday that the rules be changed so that while 51% must still be Australian-owned, the remaining 49% may be owned by a single foreign airline.
Consolidation
The future of Qantas has been uncertain since an 11bn Australian dollar ($7.1bn; £4.8bn) bid for it from Airline Partners Australia (APA) collapsed last year due to lack of support from shareholders.The future of Qantas has been uncertain since an 11bn Australian dollar ($7.1bn; £4.8bn) bid for it from Airline Partners Australia (APA) collapsed last year due to lack of support from shareholders.
There is an EU investigation underway into a proposed revenue sharing deal between BA and American Airlines, which would allow them to agree fares, routes and schedules together.There is an EU investigation underway into a proposed revenue sharing deal between BA and American Airlines, which would allow them to agree fares, routes and schedules together.
It is a time of consolidation in the airline sector, which was hit by the high prices of fuel earlier in the year and is vulnerable to the economic downturn. BA also said that its discussions with the Spanish flag-carrier Iberia are also still continuing.
BA held a stake in Qantas between 1993 and 2004, when it sold its 18.25% stake to raise money to pay off some of its debt. It is a time of consolidation in the airline sector, which was hit by the high fuel prices earlier in the year and is vulnerable to the economic downturn.
BA held a stake in Qantas for 11 years until 2004, when it sold its 18.25% shareholding to raise money to pay off some of its debt.