We might be flying more, but the number of airlines actually taking us there is falling. To maximise economies of scale, carriers have been merging for decades, but this latest shift is different. Consolidation is no longer the preserve of private airlines – entire flag carriers are being swallowed up into aviation mega-corporations. In Europe, Lufthansa Group, Air France-KLM and IAG are the big three and it looks like they’re about to get even bigger.
Last May, Lufthansa snapped up a 41% stake in revamped Italian national airline ITA Airways, the successor to now-defunct Alitalia. Meanwhile, in late September, Portuguese ministers confirmed plans to sell a controlling share of at least 51% in TAP Air Portugal, with multiple parties said to be interested. Just a few days later, SAS accepted a deal from a consortium including Air France-KLM for 20% of the financially stricken Scandinavian carrier. Although a minority shareholding, many analysts think this figure could rise over time and that the Franco-Dutch group will have a strong influence on the airline. Expect all of the above brands plus a few others to make further consolidation headlines in 2024.
Having taken a back seat during the pandemic years, sustainability is ba…
