Leading carrier of UK, British Airways has announced to hold merger talks with Australian carrier Qantas Airways Ltd.  The new step is taken by British Airways to expand its service through out the globe. Apart from it, the UK carrier has agreed to enter into merger with Iberia. According to reports, a combination of British Airways, Iberia, American Airlines and Qantas will form an aviation behemoth, flying 223 million passengers a year on a fleet of 1,565 aircraft, generating revenues of $53.3 billion annually.

 

Commenting on the merger, Willie Walsh, the British Airways chief executive said that it is a step toward creating the first truly global airline. The two airlines, which have been cooperating since 1995, are reported to be focusing on a complete and permanent merger which will result in a dual-listed structure with separate shareholders but a combined balance sheet.

 

A dual-listed company refers to a structure wherein both companies continue to exist with separate bodies of shareholders, but they agree to share all the risks and rewards of the ownership of all their operating businesses in a fixed proportion. The spokesperson also informed that after the merger there will be an overlapping board of directors and an integrated management team. With 550 international destinations, British Airways is the UK's largest international scheduled airline.