Airlines on lookout for mergers

Singapore - Airlines such as Singapore Airlines (SIA) and Qantas are on the lookout for possible takeover and joint venture, as lower demand for air travel intensifies competition among global carriers.

SIA revealed on the sidelines of the recent International Air Transport Association's (IATA) annual meeting in Kuala Lumpur that the company is "keeping an eye out" for possible acquisitions in China and India, despite the current economic downturn, CNA reported.

Previously, local media said China Eastern Airlines and Shanghai Airlines could merge, putting to doubt whether SIA will re-start negotiations to buy a stake in China Eastern.

China Eastern Airline had planned to sell a significant stake to SIA last year, but the deal was scrapped due to a proposed counter offer from Air China.

Although SIA is interested in acquisitions in China and India, the airline said this is not a priority as the company plans to focus on profit margins, CNA reported.

A fall in the demand for air travel, coupled with a potential rise in oil prices, has intensified the competition for passenger revenue among global carriers.

Alan Joyce, CEO of Qantas said on the sidelines of the IATA meeting in Malaysia that he's not looking at any specific mergers at the moment.

However, Joyce said that Qantas is "keeping its eyes open", but there are no plans to merge with another airline, specifically with British Airways (BA), after negotiations fell apart earlier this year, Skynews reported.