Now we know why QF and BA are in merger talks...

[dot]

It's because Simon Westcott of 'The Age' wrote some blog entries comparing QF and DJ!

At least that's what Simon seems to think...

Well. Little did I know that the Qantas v Virgin debate would kick up such a storm. Nor did I predict our national carrier would be spooked enough by it to re-open merger talks with BA. One insider source tipped the merger 'highly likely' to me last week; I agree with those commentators who prefer a more strategic Asian partner....
(continues)

See The Age Blogs: Roaming Reporter

Did I also mention that I am amazed that Simon (an employee of Fairfax) linked to a blog at rival News ltd???!!!:shock:

 

[JohnK]

Well either way the merger talks did not last long. Where next? Cathay Pacific? Perhaps Malaysian Airlines? It could be anyones guess and even the CEO does not have a clue....

 

[Evan]

How about JL as an odd one ?
QF and JL have been working together on web things recently from what i can tell and all JL booking from the OWE planner go to QF.
Not that i think it could ever work, just wandering as Fred would do

CX and QF i could not imagine either. MH a small maybe but for sure i would have thought the best cultural fit would be AA or BA.

E

 

[JohnK]

The problem is everyone of the airlines mentioned so far is a decent entity in their won right and may not want to be a silent partner in the running of the new business. And if you do merge with an overseas carrier it will be vary difficult to maintain Austalian owned and controlled for too long. Simple economics will take over....

 

[Evan]

Yes it does seem strange its all the large airlines talking, i guess the risk/reward calculation is not good enough to swallow smaller airlines since you need in some areas i am sure similar effort to integrate no matter how small or large the target is.

I am still amazed how the mergers have taken place in the LOTFAP, but they have airlines that really are in big trouble so its life of death by all accounts.

BA has big pension debts and for sure in the current climate this is one thing you really dont want ! Maybe QF will go it alone for a while longer since not so many good partners out there.

E