British Airways and Australian flag carrier Qantas are in merger talks.

A spokesman for BA said that if a deal was reached the new company would be a dual-listed company in both London and Australia, with the two airlines retaining their identities in a way similar to the Air France-KLM join-up.

The spokesman said: "British Airways confirms that it is exploring a potential merger with Qantas Airways via a dual-listed company structure."

British Airways-Qantas Merger Talks

However, the spokesman said there "is no guarantee that any transaction will be forthcoming" and any announcements would be made in due course.

Speaking about the talks, a trader in the City told Reuters: "It's a good move for British Airways and Qantas. Basically, it means they would have got long-haul flight-sharing with Qantas. Qantas has a big exposure in the far east, so ultimately it will cut down the cost for BA."

Meanwhile, the airline also confirmed that separate merger negotiations with Spanish carrier Iberia are ongoing.

Source - Airport International's Aviation Correspondent

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