British Airways to Try Again to Merge With KLM

British Airways, Europe’s largest airline, said Sunday that it is in talks with KLM Royal Dutch Airlines and other carriers about combining operations as a slump in demand forces airlines to cut costs.

“European aviation has to consolidate,” BA Chief Executive Rod Eddington said. “By the time it’s finished there’ll probably be three rather than 15 major international carriers in Europe,” he said, citing British Airways, Lufthansa and Air France.

British Airways has tried and failed to buy KLM four times in the last decade. Many analysts still expect the companies to combine within two years.

Eddington said a drop in air traffic since the Sept. 11 terrorist attacks has added to pressure on European airlines to consolidate.

Airlines and plane manufacturers have slashed some 120,000 jobs. British Airways, which operates the most transatlantic flights, said it will cut 7,000 jobs.

KLM is unlikely to survive as a stand-alone airline because its home base is too small, analysts said.