THE AUSTRALIAN government has said it is open to a $5.9 billion (€4.65 billion) merger between Qantas and British Airways as long as it is not a takeover.
The announcement sent the Australian carrier’s shares up almost 10 per cent. Qantas and BA said yesterday they were in talks to form a dual-listed airline, a latest move in an industry desperate to slash costs as recession-hit businesses and tourists curb travel.
However, Australia’s Labour government threatened to end the deal if it felt Qantas was being taken over. “Our bottom line is the ‘flying kangaroo’ remains majority Australian-owned and based,” said treasurer Wayne Swan. Ministers flagged any deal would have to meet national interests and should not be a takeover of Qantas.
“Were that to be the case, the government would certainly not support it,” transport minister Anthony Albanese told state radio.
“I would support that type of [merger] move,” said Angus Gluskie of White Funds Management, which owns Qantas shares, citing a need to cut costs given falling demand and the risk of global recession.
But another Australian fund manager said Qantas was unlikely to yield much more cost savings from a merger with BA than it could already achieve with its code-sharing partnership. – (Reuters)
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