• Times of London , Wednesday, December 3, 2008 10:45 AM

British Airways is conducting merger talks with several carriers that could create the largest airline in the world, David Robertson reports. The latest news is that it is courting the Australian airline Qantas, with which it has a long record of cooperation. (BA bought a quarter share in Qantas when the Australian carrier was privatized in 1993, but it has not had any stake in the airline since 2004.)

BA has also been discussing a merger with Iberia, the Spanish national carrier, and hopes to expand its alliance with American Airlines. The combination of the four would create a behemoth capable of carrying 198 million passengers a year -- nearly six times BA's current traffic.

A merger between BA and Quantas would be listed in London and Sydney but both brands would stand on their own. No decision has been made about who would lead the organization or where the headquarters would be.

A reader from Saudi Arabia offers a helpful suggestion in the comments section of the story: "Maybe the new airline can serve grilled steaks and change its name to BA-B-Q ?" Further proof that professional marketers will survive our newfound recession.

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