British Airways may revive Qantas tie-up

British Airways Plc could revive plans for a tie-up with Qantas Airways Ltd, using its merger with Spain’s Iberia Lineas Aereas de Espana SA as atemplate, Chief Executive Officer Willie Walsh told. The Iberia model would allow Qantas to retain a separate brand and home base, Walsh said, according to the report. There are no plans to pursue atie-up at present, and the “quite negative” political reaction in Australia to a proposed deal last year would be a “major hurdle,” he added. British Airways has agreed to combine with Iberia to boost its network amid a slump in international travel that contributed to a record first-half loss. The carrier abandoned merger talks with Qantas last year after the airlines failed to agree on whom would control the new company.

(By Skyline College)



If I were Qantas, I wouldn’t consider giving up control of my future to British Airways, said Jim Eckes, managing director of Hong Kong-based Indoswiss Aviation. “The financial condition of Qantas is much better than that of British Airways, which is in a sad shape and getting worse each month.” The carrier isn’t engaged in any merger talks, said a Qantas spokeswoman who asked that her name not be used.

The Sydney-based airline rose 1.1 per cent to A$2.72 at the close. It’s gained 3.4 per cent this year, compared with British Airways’ 13 per cent rise. At the time of the scuppered deal between the two airlines, British Airways, Europe’s third largest airline, said that talks had stumbled over “key terms”. The relative values of the airlines Qantas has a higher market value while British Airways’ revenue is about a third more than Qantas’ also proved a stumbling block. The carriers have continued to cooperate on flights between Australia and the UK and as members of the Oneworld alliance. Airlines need more cross border consolidation to cure a “sick” industry struggling to reverse losses, the International Air Transport Association said on November 16.


MBA, BBA, Mass Communication and Travel & Tourism institute in Delhi and Gurgaon.