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8-Oct-2015 4:55 PM

ERA says many airlines in Europe are vulnerable to mergers and acquisitions

European Regions Airline Association (ERA) director general Simon McNamara, speaking at the CAPA World Aviation Summit 2015, said (07-Oct-2015) the European aviation industry faces yet more consolidation despite five airline groups controlling 54% of its market share. The remaining amount is split between 136 airlines, he added, leaving many of them vulnerable to mergers and acquisitions thanks to their size. Mr McNamara said: “Not all of those airlines are making money but quite a lot of those five are. “From an industry point of view, consolidation is a great thing until you get to one – a monopoly – and set prices as you want. From a consumer point of view that’s not great, that’s why regulators have to take on that role. There’s still more (consolidation) to go, of those 136 carriers in Europe, some are extremely small.”

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