Outgoing Qantas boss says merger inevitable

0 Comments | AFP, August, 2008

SYDNEY (AFP) — Australia's national airline Qantas will undoubtedly merge with another carrier in the future, the company's outgoing chief executive said Friday.

Geoff Dixon said consolidation was already occurring within the industry as airlines struggle against falling demand and rising fuel costs, and called for a "level of maturity" in any discussion of a potential merger.

"The airline industry is very fragmented. It is hugely capital intensive. Other airlines are starting to merge and we must be part of that," Dixon told the Australian Broadcasting Corporation.

"It doesn't mean the brand will go. It will be probably very similar to what it is now. But people have got to understand that this will happen."

Dixon would not name any possible suitors...