Australian FM says Qantas merger keeps it competitive

CANBERRA, Dec. 3 (Chinese media) -- Australian Foreign

Affairs Minister Stephen Smith said on Wednesday the merger between Australian

airline company Qantas and British Airways may ensure the Australian airline

industry remains competitive.

"The airline industry is a very tough industry," Smith told ABC

Radio, adding that consolidation, through mergers or partnerships had kept some

airlines in business.

"But like a lot of airlines in recent times it's ...

been through tough times, so it's no surprise that it may be looking for a

partnership."

British Airways has confirmed that it is in merger

talks with Qantas. The news came as the federal government indicated it was

considering lifting from 35 percent to 49 percent the holding foreign airlines

can have in Qantas.

British Airways in merger talks with

Qantas

LONDON, Dec. 2 (Chinese media) -- British Airways (BA) confirmed

on Tuesday that it is undergoing talks with Australia's Qantas Airways on

possible merger.

A statement issued by the BA said it is exploring a

"potential merger" with Qantas Airways Limited via a dual-listed company

structure while continuing discussions with Iberia, the Spanish airline. Full Story