Up, Up & Away
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Up, Up & Away
Qantas Keen on Intercontinental Mergers.
As the autor says, tricky talks ahead.
As the autor says, tricky talks ahead.
June 7 (Bloomberg) -- Qantas Airways Ltd., which pulled out of a merger with British Airways Plc in 2008, is keen to play a leading role in the consolidation of carriers from different parts of the world, Chief Executive Officer Alan Joyce said.
Australia’s biggest carrier sees its future in the global market and would be “a great asset for anyone,” Joyce said today in an interview at the annual meeting of the International Air Transport Association in Berlin.
“Consolidation isn’t easy to do and cross-border intercontinental mergers have not occurred yet,” he said. “I think they will, and Qantas will be at the forefront of that, but it will take some time.”
Joyce declined to comment on whether plans for a tie-up with British Airways might be revived after the U.K. carrier’s combination with Iberia Lineas Aereas de Espana SA, which is due to be completed this year. The previous deal was called off after Joyce and British Airways CEO Willie Walsh failed to agree on how to split ownership, the U.K. carrier has said.
“I don’t think you can ever look back and have any regrets,” Joyce said. “I think you have to look forward, and we do look forward at what other opportunities do exist.”
Sydney-based Qantas is already a partner of British Airways in the Oneworld global alliance, as is Iberia and AMR Corp.’s American Airlines, with which Walsh is forging closer cooperation on routes across the Atlantic.
Tricky Talks
A combination of Qantas and British Airways would have created a carrier with $24 billion in sales and 500 planes. Talks were tricky because the London-based company had more revenue and Qantas a higher market value. That’s still the case.
Joyce said today that his airline’s investment-grade credit rating would also be a major attraction for a merger partner.
While the Asia-Pacific market is now “very healthy” for Qantas, demand on routes to the U.K. and Europe is still “weak” and of most strategic concern, Joyce said.
“Our international long-haul flights are still the ones that are suffering most,” he said. “The business market is returning but there needs to be a significant improvement to get them back to where we need them to be.”
Australia’s biggest carrier sees its future in the global market and would be “a great asset for anyone,” Joyce said today in an interview at the annual meeting of the International Air Transport Association in Berlin.
“Consolidation isn’t easy to do and cross-border intercontinental mergers have not occurred yet,” he said. “I think they will, and Qantas will be at the forefront of that, but it will take some time.”
Joyce declined to comment on whether plans for a tie-up with British Airways might be revived after the U.K. carrier’s combination with Iberia Lineas Aereas de Espana SA, which is due to be completed this year. The previous deal was called off after Joyce and British Airways CEO Willie Walsh failed to agree on how to split ownership, the U.K. carrier has said.
“I don’t think you can ever look back and have any regrets,” Joyce said. “I think you have to look forward, and we do look forward at what other opportunities do exist.”
Sydney-based Qantas is already a partner of British Airways in the Oneworld global alliance, as is Iberia and AMR Corp.’s American Airlines, with which Walsh is forging closer cooperation on routes across the Atlantic.
Tricky Talks
A combination of Qantas and British Airways would have created a carrier with $24 billion in sales and 500 planes. Talks were tricky because the London-based company had more revenue and Qantas a higher market value. That’s still the case.
Joyce said today that his airline’s investment-grade credit rating would also be a major attraction for a merger partner.
While the Asia-Pacific market is now “very healthy” for Qantas, demand on routes to the U.K. and Europe is still “weak” and of most strategic concern, Joyce said.
“Our international long-haul flights are still the ones that are suffering most,” he said. “The business market is returning but there needs to be a significant improvement to get them back to where we need them to be.”
