BA and Qantas merger talks fail
British Airways and Qantas today said they had failed to reach agreement on a potential merger.
The pair revealed earlier this month that they were in discussions about joining forces through a dual-listed company structure.
But in a statement today, BA and Qantas said it had not been possible to come to an agreement over the key terms of the merger. They did not provide further details.
Both airlines already jointly market, or codeshare, on some routes and had pledged to retain their identities through any tie-up.
BA is still in separate talks with Spain's Iberia in a move that could eventually lead to a tie-up with giant US carrier American Airlines.
BA held a stake in Qantas from 1993 to 2004 but sold its 18 per cent in 2004, while continuing its codeshare agreement.
Today's statement said: "British Airways and Qantas Airways are announcing that after detailed discussions about a potential merger, talks have ended.
"Despite the potential longer term benefits to both British Airways and Qantas, the airlines have not been able to come to agreement over the key terms of a merger at this time.
British Airways and Qantas will continue to work together on their joint business between the UK and Australia and as part of the oneworld alliance."
Talks over a BA-Qantas tie-up first emerged on the day the Australian government released a transport green paper considering whether to overhaul foreign ownership rules in Qantas that currently limit a single foreign holding to 25 per cent and 35 per cent in total for all foreign airlines.
The prospect of consolidation in the airline sector has been fuelled by sky-high oil prices and the prospect of a deep global recession. BA recently announced a 90 per cent fall in half-year profits and said it was axing services from its summer 2009 schedule.
Qantas - which stands for Queensland and Northern Territory Aerial Services - was formed in 1920. It employs around 37,000 people and flies to 145 destinations in 37 countries.
Qantas has an airline subsidiary, Jetstar, and has just taken delivery of its first Airbus A380 superjumbo.
Apple has been hit by complaints about the 1.1GB download
Much-loved cartoon character returns - without Sir David Jason
Liam Neeson's Downton dreams
Matt Smith is set to join cast of the Jane Austen classic - with a twist
Actress to appear in second series of the hugely popular crime drama
Olympic diver has made his modelling debut for Adidas
- 2 Scottish independence: Learn from Quebec's mistakes and beware of promises. Vote Yes.
- 3 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 5 Have you heard about the film Singapore has banned its people from watching? Well, you have now
Thailand beach murders: Thai PM suggests 'attractive' female tourists cannot expect to be safe wearing bikinis
Scottish independence: Final opinion polls show undecided voters could swing result either way
Scottish independence: Almost half of No voters have felt 'personally threatened' by the Yes campaign
Isis release 'Flames of War' video warning Obama of attacks troops could face in Iraq
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Portuguese academic says British are 'filthy, violent and drunk'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
iJobs Money & Business
£70-90,000: Saxton Leigh: Our client a London Market Insurer are seeking a Pro...
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...