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A spokesman for BA confirmed that merger talks were continuing, with such a move possibly taking place through a dual-listed company structure, reports the Press Association.
"The discussions between BA and Iberia are continuing," continued the spokesman, adding: "There is no guarantee that any transaction (with Qantas) will be forthcoming and a further announcement will be made in due course, if appropriate."
Formed in 1920, Qantas (Queensland and Northern Territory Aerial Services) employs around 37,000 people and flies to 145 worldwide destinations in 37 countries.
BA is the largest international scheduled airline in the UK and flies to more than 550 destinations around the word.
The group consists of British Airways Plc, in addition to a number of subsidiary companies such as British Airways Holdings Ltd.
