"No guarantee that any transaction will be concluded": Qantas on merger with BA
Published: 08 Dec 2008： Qantas has acknowledged that there are "a number of significant matters need to be resolved before the Australian carrier can pursue a merger with British Airways".
Its chief executive Alan Joyce said that there is no guarantee that any transaction will be concluded.
"There are a number of significant matters that need to be resolved, including agreeing an appropriate merger ratio and resolving issues around BA´s pension fund, and the broader economic outlook."
"Qantas comes to these negotiations from a position of strength," he said. "We will only proceed with this transaction if we are assured that it will maximise value for Qantas shareholders. We are in these discussions because a merger has the potential to create the global scale that would allow us to grow and enhance our services, and deliver significant revenue and cost synergies - all to the benefit of our customers, our employees and our shareholder," Joyce said.
"Consolidation give airlines greater scale in what is a volatile and highly competition industry. The global competitive environment is getting tougher," he said. "I also want to stress that consolidation is just one of the items on our agenda and we will not allow the current discussions to distract us."