Qantas and British Air explore merger

[oz_mark]

Qantas has confirmed it's exploring a potential merger with British Airways via a dual-listed company structure.

The statement's in response to an earlier BA announcement in London, that it's exploring a potential merger with its Australian rival.

Sky News: Qantas and British Air explore merger

 

[Mwenenzi]

This thread has some post about the possible merger: http://www.frequentflyer.com.au/com...program/joyce-goal-to-merge-qantas-15479.html

 

[NM]

British Airways explores merger with Qantas

and from News.com.au:

BRITISH Airways is "exploring a potential merger" with Australian rival Qantas.

But Qantas said there's no guarantee a deal will go ahead.

 

[oz_mark]

This thread has some post about the possible merger: http://www.frequentflyer.com.au/com...program/joyce-goal-to-merge-qantas-15479.html

Yes, but I thought that since the two airlines have been outed, a specific thread to discuss this combination would be worthwhile.

 

[JohnK]

Now this idea has some merit.

If it does go ahead I can see BA flying UK-Asia and QF flying Australia-Asia. And I think it would be great to have QF flights arriving into Asia early afternoon allowing for better same day connections.

 

[Evan]

I like the sound of this merger a lot more than some others, Its not got so much route overlap, its got the right sort of corporate culture.
They already close and share a lot of lounges etc.
The soft and hard product is similar.
E

 

[simongr]

I would not necessarily refer to them as rivals either given the JSA, membership of the same alliance and as pointed out above the lack of significant route overlap.

The question I would have about route overlap is where there is none (say LHR-JFK or NRT-SYD) how will they price the different product - especially PE and whY given the different qualities of the product.

I don't specifically mean how much will the new Britas chareg SYD-LHR in whY but how have these different rpoduct mixes been handled in other mergers?

Have their been many/any true mergers of equals or just merge-overs in the airline industry?

 

[Evan]

I would not necessarily refer to them as rivals either given the JSA, membership of the same alliance and as pointed out above the lack of significant route overlap.

The question I would have about route overlap is where there is none (say LHR-JFK or NRT-SYD) how will they price the different product - especially PE and whY given the different qualities of the product.

I don't specifically mean how much will the new Britas chareg SYD-LHR in whY but how have these different rpoduct mixes been handled in other mergers?

Have their been many/any true mergers of equals or just merge-overs in the airline industry?

The PE/WT+ product could be quickly made similar, by doing the food/drinks in WT+ and checkin business etc same as QF does, then the only real different is seat pitch.
I dont really think there is much different in the whY product (And this i can speak on authority given i fly it so much)

I cant think of any equal mergers, more a larger + smaller situation.

Will be interesting if this really a serious look at a merger or not, but excluding the de-valueing of the QF program to BA levels (its easier to become QF Platinum than BA equiv as i understand) then i would be rather positive in how it could work.

E

 

[mainly tailfirst]

Aren't BA and IB trying to merge currently? Would QF shareholders not want the dual listing to proceed prior to that? After all, I think QF is fractionally more valuable than BA and thus QF shareholders should expect to get > 50% of any dual listing? Fun times ahead no doubt.

If it goes through, one would hope that this turns out to be a BHP Billiton rather than another AMP.

mt