British Airways, Qantas in merger talks, Delta trims capacity

British Airways Plc said Tuesday it is exploring a potential merger with Qantas Airways Ltd. via a dual-listed company structure.

The discussions between British Airways and Iberia are continuing, the company said, adding there is no guarantee that any transaction will be forthcoming. Meanwhile, Delta said it will trim system-wide capacity, for both Delta and Northwest, during 2009 because of the global economic recession and weaker demand for air travel.

System-wide 2009 capacity will be down 6 percent to 8 percent year over year. Domestic capacity will be down 8 percent to 10 percent and international capacity will be down approximately 3 percent to 5 percent. These numbers include the full impact of previously announced 2008 capacity reductions.

Source:American Shipper