Another flirtation for British Airways

British Airway's yearning to get married has them matched up with Austrlian carrier Qantas. Any deal would mark a major step towards the first global airline - but don't hold your breath.

If it keeps this up, "BA will have had a dalliance with half the carriers" in the Oneworld airline alliance, said Fiona Maharg-Bravo. It wants to deepen its collaboration with American Airlines, and has been discussing a merger with Iberia since July. The latest flirtation is with Australia's flag carrier, Qantas. A deal would mark the first intercontinental airline merger and a major step towards the first global airline: throw in the other two and the combined group would carry six times BA's current traffic.

The impetus behind consolidation is growing amid high recent fuel prices, widespread overcapacity and the global recession. According to the International Air Transport Association, worldwide losses will total $5bn this year, the eighth loss in the past nine years and the worst since 2004. Airline bosses hope that the dire state of the industry "will weaken the resolve of competition authorities", said David Wighton in The Times. Hence Ryanair's latest tilt at Aer Lingus.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.