Merger talks between a number of UK and international airlines are currently taking place.

British Airways (BA) and Australian airline Qantas have confirmed that they are in talks regarding a possible merger, while Aer Lingus has rejected a hostile takeover bid from Ryanair.

Both Qantas and BA have confirmed that talks are taking place. In a statement, BA said: “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. There is no guarantee that any transaction will be forthcoming and a further announcement will be made in due course, if appropriate.”

BA also confirmed that it is still in discussions with Spanish airline Iberia and American Airlines regarding an alliance between them all – a partnership that Virgin Airlines is currently campaigning against. If both discussions come to fruition, the four airlines would merge to create the world’s first global airline.

Meanwhile, low-cost Irish airline Aer Lingus has rejected a hostile takeover bid from Ryanair, which offered €1.40 per share. Ryanair had previously attempted to take over the airline in 2006, but failed to achieve antitrust clearance and, in 2007, the European Commission prohibited its takeover bid again.