British Airways 'explores merger' with QantasBritish Airways British Airways in full British Airways PLC International passenger airline based in London. In 1936 British Airways Ltd. was founded through the merger of three smaller airlines. said Tuesday it was "exploring a potential merger" with Australian rival Qantas Airways as part of a broad tie-up in the aviation sector that is set to fly into a deep recession. BA's share price soared in London trade after the airline also said its tie-up talks with Spanish airline Iberia were continuing. "In response to recent media speculation, British Airways Plc confirms that it is exploring a potential merger with Qantas Airways Limited Qantas Airways Limited Australian airline, the oldest in the English-speaking world, founded in 1920 as Queensland and Northern Territory Aerial Services Ltd. (later abbreviated as Qantas). By 2002 it had more than 140 destinations in over 30 countries. via a dual-listed company A dual-listed company or DLC is a corporate structure which involves two listed companies with different sets of shareholders sharing ownership of one set of operational businesses. In a conventional takeover one business acquires the shares of another. structure," BA said in a short statement. "The discussions between British Airways and Iberia are continuing. There is no guarantee that any transaction will be forthcoming and a further announcement will be made in due course, if appropriate," the British carrier added. British Airways and Iberia announced in July they were holding merger talks to create the world's third-largest airline in terms of income. The aviation sector is seeking consolidation as airlines fight for survival having been crippled by record high oil prices. They are now facing a fall in air travel as the global economy enters recession. British Airways, Iberia and American Airlines American Airlines Major U.S. airline. American was created through a merger of several smaller U.S. airlines and incorporated in 1934. It continued to buy the routes of other airlines, becoming an international carrier in the 1970s; its routes include South America, the (AA) in August signed an agreement to cooperate on flights between North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe, a month after crude oil prices had struck record highs of 147 dollars a barrel. Jet fuel is distilled from crude oil, which since reaching historic heights four months ago have plunged to trade at only 46 dollars on Tuesday. BA's tie-up talks also come as airlines seek to take advantage of the recently-launched "open skies  This article is written like a personal reflection or and may require .Please [ improve this article] by rewriting this article in an . " agreement that has loosened restrictions on airlines flying between the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Europe. Recently BA chief executive Willie Walsh Willie Walsh (born in 1961) is an Irish airline executive. He is currently the Chief Executive Officer of British Airways and is a former Chief Executive of Aer Lingus Early life Walsh was born in Dublin, Ireland. He attended his local secondary school Ardscoil Rís. also said his airline had expressed strong interest in a commercial alliance with troubled Italian carrier Alitalia. Following BA's announcement of a potential merger with Qantas, the share price of British airline soared to the top of London's FTSE 100 index FTSE 100 Index A market-weighted index of the 100 leading companies traded in Great Britain on the London Stock Exchange. The Financial Times , winning 11 percent to 155 pence in afternoon deals. Last month, British Airways announced a 91.6-percent plunge in half-year profits. Pre-tax profits dived to 52 million pounds (64 million euros, 82 million dollars) from 616 million pounds during the same six-month period a year earlier. The airline recorded a net loss of 42 million pounds for the six months to the end of September and said passenger numbers were down by almost four percent. Qantas meanwhile last week announced further cuts to its capacity, saying the global financial crisis was continuing to dampen passenger demand. Chief executive Geoff Dixon said lower demand for flights, particularly on international routes, would mean Qantas' profit before tax for the fiscal year ending June 30, 2009 would be about 500 million Australian dollars (324 million US dollars). 
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