BA in talks with Qantas

Tuesday 2nd December 2008, 2:49PM GMT.

BA in talks with Qantas British Airways has confirmed it is in merger talks with Qantas, sending shares in the flag carrier airline higher.

The merged company would be listed both in Australia and the UK if the deal goes ahead, BA said in a statement to the stock exchange.

BA is already in talks with Spanish airline Iberia to merge as it attempts to consolidate through the economic downturn.

These discussions are continuing, the airline said.

“There is no guarantee that any transaction will be forthcoming and a further announcement will be made in due course, if appropriate,” BA added in the statement.

Shares in British Airways soared by 14 per cent on the announcement.

Both companies have seen a troubled year. British Airways has seen profits fall, become embroiled in a price-fixing scandal and endured a chaotic opening at Terminal 5.

Meanwhile, Qantas has seen its near-spotless safety record tarnished after several incidents including a mid-air explosion thought to be caused by a defective oxygen tank.