BA and Qantas merger could mean savings for both

The proposed merger between British Airways and Qantas could make it easier for the combined airline to receive larger discounts on aircraft purchased from Airbus and Boeing.

Major airlines around the world, including BA and Qantas, are feeling the pressure to reduce operating costs now that the global recession has driven down passenger numbers for the first time since 2003. If the two airlines merge, the new airline would become Boeing’s largest customer for the 787 and the second-largest for Airbus’s A380 – the flagship aircraft for both manufacturers.

Current talks could result in a combined carrier having a fleet of 500 aircraft and passenger traffic of over 71 million per year. The two airlines currently cooperate on flights linking London and Sydney and are able to jointly set fares on the “Kangaroo” route, as members of the oneworld alliance.

The chief executive of Qantas, Alan Joyce, commented in an interview last week that Qantas would want to maintain its brand in any joining up with British Airways, in a similar manner as with the Air France-KLM merger, when the French carrier purchased KLM in 2004.

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