ITA-Lufthansa deal sparks further airline merger talk

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German airline Lufthansa's bid for a minority stake in Italy's ITA Airways has ignited talk of further potential sector consolidation as the industry seeks to plot a more profitable post-pandemic recovery

"We clearly focus on ITA," a Lufthansa spokesperson said. "At the same time, however, we closely monitor consolidation in the European airline market.", which has been under Chapter 11 bankruptcy protection in the United States since last summer, is also a potential candidate, Kepler Cheuvreux airlines analyst Ruxandra Haradau-Doeser and Bernstein's Irving said.

"TAP will finish up in BA-IAG, then I think easyJet is going to finish up being bought by either BA or Air France or both jointly and then Lufthansa will buy WizzSome aviation executives, however, said airlines would be wary of taking on risk in what is still a tough operating environment."It's very difficult to really make it work well in Europe.

"For healthier yields and margins, European airlines need to find capacity discipline: this is something that has been lacking in the past," Bernstein's Irving said. "Right now our priority is to fully recover from the COVID crisis and to complete our transformation," an Air-France KLM spokesperson said in an emailed response to a request for comment.

 

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This would be great. I hope the Germans take full control as historically Italians are unable to run a successful airline Company.

Consolidation + More Profitability = Higher Fares

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