British Airways in Merger Talks with Qantas

Shares soar 12% on news

By the Associated Press

Posted Dec 2, 2008 10:15 AM CST

(AP) – British Airways is in talks with Australia's Qantas Airways about a potential merger, the firm said today, sending its shares soaring as it fueled expectations of consolidation in the hard-hit aviation industry. Already pursuing a revenue-sharing deal with American Airlines and Spain's Iberia SA, BA said it’s exploring a "potential merger" with Qantas "via a dual-listed company structure."

In a brief statement released in response to market speculation, BA did not provide any reasoning for the prospective deal, but chief executive Willie Walsh has long advocated industry consolidation, arguing that closer cooperation will help airlines cut costs in the current difficult economic climate. The London-based carrier's stock jumped more than 12% after the announcement to $2.35.

In this July 24, 2007 file photo, a Qantas 767 passenger jet is seen at Sydney Airport, Australia. (AP Photo/Mark Baker)

British Airways said today it's in merger talks with Qantas. (AP Photo/Lefteris Pitarakis)

A British Airways Jumbo jet lands at London's Heathrow Airport. (AP Photo/ Max Nash)

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British Airways in Merger Talks with Qantas

Shares soar 12% on news

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BA, American Hope 3rd Time Is the Charm

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British Airways in Merger Talks with Qantas

Shares soar 12% on news

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OTHER STORIES ON OUR RADAR

Australia • airline industry • Qantas • merger • British Airways • Britain • stock price

MOST POPULAR STORIES

[ By Views ]

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More Newser Stories

Aussie Court Ends Qantas Strike, Grounding

Airline ordered back to the skies after 14-hour hearing

British Air, Qantas Merger Talks Crash

$6 billion deal won't fly after airlines disagree on key issues

BA, American Hope 3rd Time Is the Charm

Carriers predict US antitrust approval for alliance first aired in '96

Bankrupt Air Australia Strands Thousands

Ticket holders may not get refunds

Overweight People Should Pay More to Fly

Former Qantas economist makes his case

About Us

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Newser By Users

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