British Airways PLC and Qantas Airways Ltd. called off their merger talks after failing to agree on the terms of a potential deal, according to AP. The move left the British airline free to pursue other agreements with European carriers as the industry braces for a significant slowdown. In statements to the London and Australian stock exchanges, the two airlines said they were unable to decide on «key terms» despite the «potential longer term benefits» of any deal. BA revealed earlier this month it was in talks with Qantas about a possible consolidation following an approach from the Australian airline. Carriers around the world have been seeking out deals to cope with a global financial crisis that has severely crimped passenger demand. BA, the third-largest airline in Europe, is already pursuing a revenue-sharing deal with American Airlines and Spain's Iberia SA. The discussions with Iberia helped derail the Qantas talks, along with Australian government restrictions on foreign ownership.
