The past few years have not exactly been easy sailing for European airlines. Near-global slowing of the economy has limited the opportunity for growth, and efforts to address high legacy costs have had mixed results. Add to this the erosion of their customer base—and profits—by low-fare airlines and Gulf carriers, and it is clear the situation has been troubled for some time. But in the last few months, what has been a slow, relentless downturn has become acute. A seemingly ...

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