BA in merger talks with Qantas

[Kiwi]

But according to an FT report I read today (in print), QF and IB are both saying that BA has to choose between them and that "only 1 transaction will take place."

Not surprising. IB trying to play hardball so it doesn't miss out (if BA-QF goes first then IB is delayed many years, which makes managing the business difficult due to state of limbo, and no guarantee a new BA-QF won't turn around and say no later). OTOH, for QF it wouldn't want the distraction of any IB deal (whether done before or after) while integrating with BA.

[N_Architect]

Now they're looking into possibly getting a large minority stake in Alitalia as well...

http://online.wsj.com/article/BT-CO-...16-708280.html

ROME (MF-Dow Jones)--A meeting Tuesday between British Airways PLC (BAY.LN) Chief Executive Willie Walsh and the chief executive of Alitalia SpA's (AZA.MI) new owner, Compagnia Aerea Italiana, was "very positive," people familiar with the situation said.

The people said Walsh made "very interesting" proposals to Rocco Sabelli, the head of CAI, which took formal ownership of Alitalia Dec. 12.

The people also said that, in a few days, British Airways will say whether or not it will consider investing in the relaunched Alitalia.

Walsh has previously expressed interest in a commercial partnership with the new Alitalia and earlier Tuesday, Italian business paper Il Sole 24-Ore reported that BA is ready to sign a commercial partnership with Alitalia, although it isn't interested in acquiring a stake in the carrier.

CAI, which is paying EUR1.05 billion to purchase Alitalia, is looking for a foreign partner to take a large minority stake in the new Alitalia, which is scheduled to take off in January.

Air France-KLM (3112.FR) is widely considered to be the preferred candidate for the minority stake.

[KeithMEL]

Talks have collapsed:
http://business.timesonline.co.uk/to...cle5363067.ece

Merger talks between British Airways and Qantas have collasped with neither side able to agree over key terms.

The airline companies have announced that after detailed discussions, they could not come to agreement over the merger terms.

A successful merger has been looking increasingly unlikely, with many in the industry claiming it would bring little benefit to either airline.

They already work together through the oneworld alliance and regulators allow them to fix prices and codeshare on the kangaroo route through a joint service agreement that has enabled BA to reduce its Australian flights to twice daily to Sydney.