Flightglobal:

British Airways is exploring a potential merger with Australian flag-carrier and Oneworld alliance partner Qantas Airways......

Author: David Kaminski-Morrow

Date: 02 December 2008

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 They want to discuss a "dual-listed company structure"; does this attempt to try and bypass any anti-competitiveness issues or is it just because they are two popular brands that want to co-operate in this bleak economic period.

It's a very interesting move however.... I wonder what Branson will say now?!?

Didn't BA own a pretty big stake in QANTAS up until relatively recently?

Interesting, BA and Qantas have partnered since the early 1930s.....what i would like to know if all of this goes ahead, is how will Iberia fit into all of this.

I am sure the Australian government will block this, they have pretty strict rules when it comes to mergers.

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.

Well, stone the flamin' crows cobber! There is no flamin' way the left-wing Aussie Federal Govt. would dream of allowing the Brits to dominate the Flying 'roo carrier. But what is much more likely is that the new right-wing New Zealand Prime Minister, John Key, will sell off the state-owned NZ flag-carrier, Air New Zealand, to British Airways and, using the cunning expertise of we true and loyal colonials, drive QANTAS from our skies and right back to Queensland and Northern Territory regional operations where they really belong. I hope they never find out my true identity as Mrs Dakota and I are using QANTAS soon to journey through that parched land where once I flew British Viscounts and was proud to be at the controls of such great British workmanship....each of them appeared to have been hand-made...but I digress...where was I? Oh yes. The day that BA takes over QANTAS will be the day that Wombats and Koalas learn to fly and Aussie blokes prefer warm flat English beer!

"Happiness is a cold can of Aussie beer....bliss is an Eskie full of it..."

I suspect that this is an attempt by BA and QF to find a way around the bi-lateral traffic agreements that both operate under . These are the agreements between national Governments to carry traffic between countries . A big issue will be how other 3rd country regulators view the combined airlines ownership and  its nationality . This will be a very challenging exercise for both and could lead to this deal failing to come off.

I sort of get a feeling that we may have heard the last of this, at least for a period, while the alleged air freight cartel violations are pursued in the Courts. There has been much publicity on this matter down here in New Zealand. Any thoughts of a general nature? Or is the affair now sub-judice Maverick?

British Airways and Qantas terminate merger talks 

British Airways Plc and Qantas Airways Ltd 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.

Source: British Airways