Qantas considers merger with Asian airline

Australian national airline Qantas has indicated that even though its merger talks with British Airways have failed, it is open to discussions with other airlines, particularly those in Asia, according to a source close to the carrier.

On Thursday, Qantas and BA ended their talks about a merger, citing an inability to come to an agreement on key terms.

The Australian airline declined to comment further, but BA said that it was not able to agree to greater than 50 per cent Qantas ownership of the merged company.

Reuters learned from the source that Qantas is not currently in active talks with another airline, but did see the potential benefits of a merger with an airline in Asia.

Early in the week, Malaysia Airlines announced that it was involved in talks with several airlines, include Qantas, regarding potential partnerships to help cope with the global economic crisis and downturn in the airline industry.

“This ranges from joint ventures and code shares to interlining partnerships,” said the managing director and CEO of Malaysia Airlines, Idris Jala.

The Malaysian finance minister, Datuk Seri Najib Razak, said to local media that the country’s government was amenable to a cooperative agreement between Malaysia Airlines and Qantas, “if it leads to a win-win situation.”

“We are nationalists and we are nationalistic, but we should not be xenophobic in the sense that we cannot look in terms of how foreigners can add value to the company and to the country,” Najib commented. “Present conditions in the world (tell) us to be creative and innovative.”

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