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| Version 3 | Version 4 |
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| BA explores merger with Qantas | |
| (20 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. |
| Under current Australian law, Qantas must be at least 51% Australian-owned. | 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. | 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. | 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 | 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. |
| Check BA share price | |
| 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. |
| BA also said that its discussions with the Spanish flag-carrier Iberia are also still continuing. | BA also said that its discussions with the Spanish flag-carrier Iberia are also still continuing. |
| 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. | 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. | 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. |
| Falling profits | |
| It its most recently announced results, BA reported a 91.6% drop in six-month profits, blaming "incredibly difficult trading conditions" for the plunge. | |
| Its pre-tax profit totalled £52m between April and September, down from £616m a year earlier. | |
| Qantas fared better in its results for the year to the end of June. | |
| Its pre-tax profit rose 36% to 1.408bn Australian dollars. | |
| But the airline warned at the time that the business was starting to see the effects of a slowing economy and rising fuel prices. |