Airlines fail to agree deal
British Airways and Qantas have ended discussions of a possible merger after failing to agree on a deal.
A statement from both airlines said that despite detailed discussions and the "potential long term benefits" they have "not been able to come to an agreement over the key terms of the merger, at this time."
According to reports, Qantas ceo Alan Joyce last week warned that a merger between the two flag carriers would only go ahead if Qantas could secure major revenue and cost benefits.
BA also said it would not agree to less than a 50% stake in the proposed dual-listed entity, despite Qantas having a greater market value.
A BA spokeswoman confirmed that Qantas was looking for more than 50% ownership.
Australian law states that Qantas must remain majority-owned by Australian investors and the airline's head office, stock market listing and major facilities must remain in Australia.
Other hurdles faced included BA's $2.2bn in pension-fund liabilities and Qantas' ruling out of a three-way merger with Iberia.
BA's separate merger talks with Iberia continue.
But BA and Qantas said they would continue to code-share as members of the Oneworld alliance.