British Airways has confirmed it is in talks about a potential merger with Australia's Qantas.
'In response to recent media speculation, British Airways Plc confirms that it is exploring a potential merger with Qantas Airways Limited via a dual-listed company structure,' BA said in a statement.
BA also said in a statement that merger talks between it and Iberia were continuing.
British Airways and Iberia announced in July they were holding merger talks to create the world's third largest airline in terms of income.
The aviation sector is seeking consolidation as airlines fight for survival having been crippled by record high oil prices and as the world faces a deep recession.
