QANTAS CHIEF HINTS OF MERGER PLAN

MELBOURNE, April 22 (Bernama) -- Australia's Qantas could be looking for a
merger soon.

This possibility was flagged by Qantas chief Alan Joyce this week in an
address to the Australia-Israel Chamber of Commerce Association lunch in Sydney,
saying the company's strong balance sheet would put it in a good position to be
the lead partner in any takeover.

"Consolidation has to occur -- there are too many players," the Herald Sun
newspaper quotes Joyce as saying.

"Qantas is in a position where it can participate in that when it occurs."

Joyce said in any tie-up Qantas would keep its name and remain distinctly
Australian.

"That point is not negotiable and it's so important," he said.

"I think that Qantas could use its balance sheet strength and financial
strength to take the lead once there are regulatory changes."

One of the recommendations of the recent Australian Government white paper
on the aviation industry was for changes to the Qantas Sale Act allowing foreign
airlines to buy up to 49 per cent of it.

At present, no group of overseas airlines can own more than 35 per cent of
Qantas and total foreign investment in it cannot exceed 49 per cent.
-- BERNAMA