Merger fails to get off the ground
02-01-2009
A possible merger between British Airways (BA) and Qantas has failed to get off the ground after talks broke down over an estimated £3.4 billion deal.
Earlier in December it was revealed that the two airlines were in discussions to potentially become a duel listed company.
In a joint statement the airlines said that despite the potential longer-term benefits for Qantas and BA, the airlines have not been able to come to an agreement over the key terms of the merger, at this time.
It went on to say that Qantas and BA will continue to work together on their joint business on flights between Australia and the UK and as part of the Oneworld alliance.
Qantas chief executive Alan Joyce had already warned that there were significant hurdles to the deal going ahead and the major challenge appears to have been how ownership would be divided between the two businesses.
A statement from BA indicates that it is unwilling to allow Qantas to own more than 50% of the new organisation, despite the Australian being larger in terms of market value.
Another issue was BA's ongoing discussions with Spanish carrier Iberia over a partnership, with Qantas stated that it would be unwilling to enter a three-way agreement.
Earlier in December it was revealed that the two airlines were in discussions to potentially become a duel listed company.
In a joint statement the airlines said that despite the potential longer-term benefits for Qantas and BA, the airlines have not been able to come to an agreement over the key terms of the merger, at this time.
It went on to say that Qantas and BA will continue to work together on their joint business on flights between Australia and the UK and as part of the Oneworld alliance.
Qantas chief executive Alan Joyce had already warned that there were significant hurdles to the deal going ahead and the major challenge appears to have been how ownership would be divided between the two businesses.
A statement from BA indicates that it is unwilling to allow Qantas to own more than 50% of the new organisation, despite the Australian being larger in terms of market value.
Another issue was BA's ongoing discussions with Spanish carrier Iberia over a partnership, with Qantas stated that it would be unwilling to enter a three-way agreement.
