British Airways is exploring a potential merger with Australian flag-carrier and Oneworld alliance partner Qantas Airways.
The UK carrier has confirmed discussions, adding that a tie-up would be through a dual-listed company structure.
"There is no guarantee that any transaction will be forthcoming," adds BA. No other details about the talks have been disclosed.
British Airways is still in talks over its planned merger with Spanish Oneworld partner Iberia.
In August, BA chief Willie Walsh stated that merger with Iberia would position the carrier for further consolidation, adding that an Iberia tie-up was "not the end game".