In air transport too, “big is beautiful”. NICOLAS ECONOMOU/NurPhoto via AFP
DECRYPTION – The large historic carriers of the Old Continent, such as Lufthansa, Air France-KLM or IAG, which are emerging strengthened from the Covid, are ready to buy smaller companies rolled by the pandemic.
“We have turned the page on Covid and look to the future with great confidence.” These remarks made in mid-February are signed Ben Smith, CEO of Air France-KLM. The bosses of Lufthansa (Lufthansa, Swiss…) and IAG (British Airways, Iberia…) would not deny them.
It is that, after two annus horribilis» Marked by abysmal losses, the major historic air carriers in Europe have returned to profits in 2022: 791 million euros for Lufthansa, 728 million for Air France-KLM and 431 million for IAG. Therefore, here they are all in the running to swallow European companies and thus widen their playing field.
The low cost enter the dance
Lufthansa is in pole position to take over a minority stake in ITA Airways, the successor to the Italian flag carrier Alitalia. Air France-KLM, without hiding it, and in a more discreet way IAG and Lufthansa are eyeing TAP, which the Portuguese government intends to privatize soon after having nationalized it in 2020 to avoid bankruptcy
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