For airlines around the world, 2024 could be a year of important decisions and milestones in mergers and acquisitions—but perhaps not many concrete changes to their operations just yet.
Major carriers are looking to consolidate, with some having made the leap by agreeing to deals in principle. However, the completion of these transactions is often painfully slow.
In Europe, the three big legacy carriers see the potential for great change to the airline landscape. Lufthansa is focused on gaining approval for its deal to acquire a stake in Italian flag carrier ITA Airways. The sale process was already convoluted, and the road to regulatory approval is proving lengthy as well. Talks with the European Commission’s competition authority have dragged on, making any concrete effect on the two companies’ operations unlikely before the winter of 2024 at the earliest.
TAP Air Portugal’s central location attracts interest
Korean Air still needs European, Japanese and U.S. approval for Asiana merger
For International Airlines Group (IAG), parent company of Aer Lingus, British Airways, Iberia, Level and Vueling, obtaining approval for its Air Europa deal—expected by the end of 2024—will be an important step as it seeks to maximize its Latin American network and strengthen its Madrid hub.
Air France-KLM, meanwhile, is boosting its presence in the Nordic region with its move to take a stake in Scandinavian Airlines (SAS). The strategy makes sense, according to John Strickland, director of JLS Consulting. “With some uncertainty about the political outlook for aviation in France, but particularly in the Netherlands, it gives them another area of growth in traffic if they’re having problems in their main hubs,” he says.
All three European legacy groups have also expressed interest in TAP Air Portugal as the Portuguese government moves ahead with privatizing the carrier.
Based in Paris, Helen Massy-Beresford covers European and Middle Eastern airlines, the European Commission’s air transport policy and the air cargo industry for Aviation Week & Space Technology and Aviation Daily.