BA is in merger talks with Qantas

[AirCruiser]

http://news.bbc.co.uk/1/hi/business/7760851.stm

[bits44]

This would make sense in today's market conditions:

http://www.google.com/hostednews/ukpres ... fg4FZaiNRQ



BA is also reported to be in talks with Iberia regarding a possible merger as well.

[jan_olieslagers]

Thanks for mentioning, bits44, but wouldn't you rather add this to viewtopic.php?f=7&t=38561 ?

(mods, you owe me one more ptje for doing your job!)

And as for the BA/IB merger talks, that has been discussed here since the Burma campaign, or probably even before.

[bits44]

Oops didn't see that one down there!

As for Iberia, you're right that one has been bandied about for ages, however this round might be the icing on the cake, I'd look for some kind of agreement before the end of the year!

nudge nudge wink wink say no more!

[sn26567]

Thanks for mentioning, bits44, but wouldn't you rather add this to viewtopic.php?f=7&t=38561 ?

(mods, you owe me one more ptje for doing your job!)

Merged the two topics. Late, I know, but I was out of town (and out of Luchtzak) for a week...

[tsv]

God Please don't let this happen. If we must merge with someone let it be a decent, profitable, professional outfit eg CX, not a debt riddled, incompetent, shambolic mess like BA.

[summersso]

God Please don't let this happen. If we must merge with someone let it be a decent, profitable, professional outfit eg CX, not a debt riddled, incompetent, shambolic mess like BA.

Huh? I though Qantas were the incompetent shambolic mess, not BA, as it's their planes that keep suffering technical faults!

I think BA are considered the best (certainly long-haul) airline in Europe - just a quick glance at Skytrax passenger comments confirms this.

[Prevangor]

Nobody is going to play russian roulette and merge with British Airways - until they come out with the truth and say how big their pension fond deficit has become. For now, only British Airways know wheather they just have a financial problem or they are at the verge of bankruptcy. We might have to wait untill early summer when they publish their next annual report.

[dna]

There is not a lot of enthusiasm for a possible merger between BA and Qantas. What would the benefits be of a merger (on top of the benefits both airlines already enjoy through their Joint Services Agreement)?

[tsv]

God Please don't let this happen. If we must merge with someone let it be a decent, profitable, professional outfit eg CX, not a debt riddled, incompetent, shambolic mess like BA.

Huh? I though Qantas were the incompetent shambolic mess, not BA, as it's their planes that keep suffering technical faults!

I think BA are considered the best (certainly long-haul) airline in Europe - just a quick glance at Skytrax passenger comments confirms this.

I'll think you'll find all airlines have spates of technical problems (writing off a certain 777 comes to mind!). How the public perceives an airlines' safety & reliablility problems probably depends as much on how the media reports (or doesn't report) various events as anything else. Much of what has been reported about Qantas lately would not have been reported at all if it had happened to another airline. But once the media are on a roll they take some stopping. IMO the only really newsworthy incidents were the hole in the 747 fuselage and the A330 computer glitch off the coast of WA. And I don't think it has been established that either of those events were Qantas' fault.

But anyway there is nothing subjective or debatable about BA having huge financial problems. It's simply a matter of fact. Their profits plummeted to virtually zero at the first sign of the Global downturn, they have a huge pension fund deficit and no hope of turning a profit anytime soon. Their fleet is older than QF's and based on current orders will be even further behind in 3 years time. Worse still the country they live in will be one of the worst affected by the Global Financial crisis simply because Financial Services are such a huge component of the British Economy. As a potential Business partner BA are the ultimate Lemon - to be avoided at all costs.

As for the Skytrax ratings - well believe what you will. LAN and Finnair are apparently only 3 star airlines while BA is 4. Anyone who has taken an intercontinental flight in Y on those 3 airlines would find that assessment hilarious.

[euroflyer]

God Please don't let this happen. If we must merge with someone let it be a decent, profitable, professional outfit eg CX, not a debt riddled, incompetent, shambolic mess like BA.

Huh? I though Qantas were the incompetent shambolic mess, not BA, as it's their planes that keep suffering technical faults!

I think BA are considered the best (certainly long-haul) airline in Europe - just a quick glance at Skytrax passenger comments confirms this.

You can forget all those ratings. There are many around and usually which each of them the majority of pax participating are from a small number of countries or just one country. And surprisingly, it is always the "national" airline of that country which wins.

I have not much of experience with BA in long-haul. But in medium- or short-haul they are nothing more than an ordinary European airline, not really bad, but not very good either. Their disadvantage is the really small network they serve if you compare them to AF/KLM or LH/LX/SN/OS. Plus their only real big hub airport (LHR) is a desaster to me, even with the new T5 now working.

And their business strategy is far from perfect obviously.While AF/KLM are there today with a strong network and are likely to make a big step into Italy soon and LH is quite fast buying more or less everything they can get their hands on (maybe a bit too much too fast, I have to admit), BA is - well - just releasing press releases about what they would like to do. The merger with IB is still not finalised, they are talking of merging with American and now with Qantas as well. At the end they might have nothing and being downgraded to a second league European carrier. If you listen to what IB is saying this week you get the feeling they are not too happy about all this

[bits44]

It appears the merger has collapsed:

http://news.airwise.com/story/view/1229590688.html

[dna]

The merger is indeed off. Statement by Qantas.

Qantas Statement Latest News
Sydney, 18 December 2008
Qantas Airways Limited (Qantas) and British Airways Plc (BA) are announcing that after detailed discussions about a potential merger of the companies, talks have ended.

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.

Qantas and BA will continue to work together on their joint business between Australia and the UK and as part of the oneworld™ alliance.

Note:
Given the cessation of discussions between Qantas and BA, additional disclosure obligations regarding dealings in BA and Qantas shares required by the City Code on Takeovers and Mergers no longer apply.

Issued by Qantas Corporate Communication (3868)