British Airways has announced that the company is considering a possible merger with the Qantas Airways Australia. British Airways says that a dual-listed company will be created for that possible merger and the company will be listed in both countries.
It came after the Australian government indications that the company may relax the policies on overseas ownership.
According to the current Australian law, Qantas 51 percent ownership must belong to Australia and an individual oversea airline can own its 25% stake while total 35 percent by different foreign airlines.
According to Australian transport Minister Anthony Albanese, the old rules might be changed, but still 51 percent stake to be owned by Australian based company, however, it will be allowed to own 49% stakes by a single foreign company.
Qantas future is somewhat uncertain particularly after a $7.1bn bid that was offered by Airline Partners Australia that collapsed during the last year.
EU is already investigating an anticipated profit sharing deal between American Airlines and British Airways. They will decide schedules, fares and routes under this deal.
After that announcement, British Airways’ shares saw 17.4 pence or 12.46% increase at the end of the day.