British Airways has confirmed it is in merger talks with Qantas Airways to create a dual-listed company.

But BA warned there was "no guarantee that any transaction will be forthcoming," and said that its discussions with Iberia are also continuing.

The move follows recent indications from the Australian government that it may be prepared to relax the rules on foreign ownership, while Qantas said any transaction would also comply fully with obligations under the Qantas Sale Act.

Source: Routes News