Article Posted on : - Dec 03, 2008

A file photo of a British Airways flight. The UK's largest international airline is exploring merger options with Australia's Qantas Airways. Boeing photo

LONDON (PTI): UK's largest international airline, British Airways Plc has said it is in merger talks with Australia's Qantas Airways.

In response to a recent media speculation, British Airways confirmed that it was exploring a potential merger with Qantas Airways via a dual-listed company structure, the company said in a statement on Tuesday.

Further, discussions between British Airways and Spain's leading air transport group Iberia are also going on.

"There is no guarantee that any transaction will be forthcoming and a further announcement will be made in due course, if appropriate," the statement said.

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.

British Airways is the UK's largest international scheduled airline, flying to over 550 destinations globally.

Shares of British Airways surged over 11 per cent and were trading at 155.90 pence on the London Stock Exchange on Tuesday afternoon.