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Australian FM says Qantas merger keeps it competitive
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09:42, December 03, 2008

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Australian Foreign Affairs Minister Stephen Smith said on Wednesday the merger between Australian airline company Qantas and British Airways may ensure the Australian airline industry remains competitive.

"The airline industry is a very tough industry," Smith told ABC Radio, adding that consolidation, through mergers or partnerships had kept some airlines in business.

"But like a lot of airlines in recent times it's ... been through tough times, so it's no surprise that it may be looking for a partnership."

British Airways has confirmed that it is in merger talks with Qantas. The news came as the federal government indicated it was considering lifting from 35 percent to 49 percent the holding foreign airlines can have in Qantas.

Source: Xinhua



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