There has not been much consolidation activity for European airlines since the first big wave of takeovers that followed Lufthansa’s purchase of Austrian Airlines five years ago. But of course there is one exception: International Airlines Group (IAG). IAG’s conditional bid for Aer Lingus would broaden its portfolio to include a profitable hybrid airline that provides a relatively low-cost base to capture a part of the U.K. and Ireland market where London-focused British ...

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