BA and Qantas Halt Merger Talks

British Airways (BA) and Qantas have ended talks after failing to reach a deal on a potential $6.4 billion merger.
Earlier this month the two airlines had announced they were interested in joining forces through a dual-listed company.
In a joint statement the airlines said that despite the: “potential longer-term benefits” they had been unable to reach an agreement.
The two airlines have said they will continue to work together on their joint business between Australia and the UK.
Qantas Chief Executive Alan Joyce had previously warned that the merger faced major hurdles and that it would only proceed if the Australian flag carrier could see major revenue and cost benefits.
The idea was based around the two airlines joining together as a dual-listed company in both countries, but the biggest difficulty is thought to be about how ownership of the combined business would be divided between the two carriers.
Australian law dictates that the majority of Qantas shares must remain in the hands of Australian investors, and that its head office and major facilities must stay in Australia.
However, on December 18, BA issued a statement saying that it would not agree to Qantas owning more than 50% of the combined firm – even though Qantas is currently the larger company by market value.
The two airlines’ co-operation as part of the Oneworld global alliance is unaffected.