BA and Qantas end merger talks

British Airways and Qantas have ended merger negotiations after failing to come to an agreement over the £4.1bn deal. However, the two airlines will continue to work together as part of a ten-airline global alliance.

Qantas says that despite the potential longer-term benefits the airlines have not reached an agreement over “the key terms of the merger at this time”.

Earlier this month, Qantas chief executive Alan Joyce warned that the merger would go ahead only if Qantas could be assured of revenue and cost benefits.

On December 2, BA and the Australian airline Qantas confirmed they were in talks over a potential merger. BA said that the tie-up would not affect BA’s revenue-sharing deals with American Airlines and Spanish airline, Iberia.

The two airlines have a joint business between UK and Australia through the Oneworld global alliance, which brings together ten of the world’s carriers.

BA held an 18.25% stake in Qantas for 11 years until selling it off in 2004. It sold the stake to raise money to help pay off debt.

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