Fed: Qantas merger may keep it competitive:Smith

AAP General News (Australia)
12-03-2008
Fed: Qantas merger may keep it competitive:Smith

CANBERRA, Dec 3 AAP - A Qantas merger with British Airways may ensure the Australian
airline remains competitive, Foreign Affairs Minister Stephen Smith says.

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
per cent to 49 per cent the holding foreign airlines can have in Qantas.

"The airline industry is a very tough industry," Mr Smith told ABC Radio.

Consolidation, through mergers or partnerships had kept some airlines in business.

Qantas was a competitive, world-class airline, Mr Smith said.

"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."

AAP sld/rl/imc

KEYWORD: QANTAS SMITH

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