This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7789077.stm
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| BA and Qantas scrap merger talks | BA and Qantas scrap merger talks |
| (20 minutes later) | |
| British Airways and Qantas have ended talks after failing to reach a deal on a potential $6.4bn (£4.1bn) merger. | British Airways and Qantas have ended talks after failing to reach a deal on a potential $6.4bn (£4.1bn) merger. |
| Earlier this month the two airlines had said they were in talks about joining forces through a dual-listed company. | Earlier this month the two airlines had said they were in talks about joining forces through a dual-listed company. |
| In a joint statement the airlines said that despite the "potential longer term benefits" they had "not been able to come to an agreement". | In a joint statement the airlines said that despite the "potential longer term benefits" they had "not been able to come to an agreement". |
| The two said they would continue to co-operate on their joint business between Australia and the UK. | The two said they would continue to co-operate on their joint business between Australia and the UK. |
| Qantas chief executive Alan Joyce had warned last week that the merger faced major hurdles and would only go ahead if Qantas could secure major revenue and cost benefits. | Qantas chief executive Alan Joyce had warned last week that the merger faced major hurdles and would only go ahead if Qantas could secure major revenue and cost benefits. |
| He also said he regretted the fact that news of the talks had become public knowledge. | |
| Merger obstacles | |
| A tie-up between BA and Qantas faced several challenges, particularly over how ownership of the combined business would be divided between the two carriers. | |
| The idea was for the two airlines to come together as a dual-listed company - in both the UK and Australia. | |
| BA said in a statement on Thursday 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. | |
| Under Australian law, Qantas must remain majority-owned by Australian investors and its head office and major facilities must stay in Australia. | |
| Its shares must also be listed on the Sydney stock market. | |
| Other complications included BA's pension-fund liabilities and also BA's separate merger talks with Spain's Iberia, as Qantas had ruled out a three-way merger. | |
| "It was always going to be a difficult marriage and clearly there are a lot of pressures from outside the relationship that are being applied - not least from Iberia and also within Qantas's institutional base," said Ian Thomas, of aviation consulting firm CAPA Consulting. | |
| Despite calling off their talks, the two airlines will still work together as part of the 10-airline Oneworld global alliance. |