Consolidation tips

The Air France-KLM Group has officially become a shareholder in SAS Scandinavian Airlines. The agreement marks the conclusion of one of the year’s biggest airline deals and heralds the latest phase of consolidation in the European airline industry.

Late last year, SAS said it would leave the Star Alliance group of airlines – but it didn’t say exactly when or how. 

Spirit Airlines was once a golden child of the airline industry. But now that a judge has blocked its proposed merger with JetBlue, Spirit is on its own to deal with declining revenues and rising operating costs. 

Anko van der Werff has a thing for airline bankruptcies. Either they follow him or he follows them. All of the three previous airlines he has worked for and led, Aeromexico as CCO, and as CEOs of Avianca and now SAS have gone through their rites of passage after he joined or after he left. And he relishes his role as tthye sharp but genial turnaround artist.

If you closely followed the debate leading up to the American-US Airways merger, you’ll recall a period during which it seemed a safe bet that the Department of Justice would nix the tie-up on antitrust grounds. DOJ officials signaled that, after signing off on mergers between United and Continental, Delta and Northwest, and Southwest and AirTran, further consolidation was likely to impede competition and give the airlines outsize pricing power. And it was their duty to forestall just such an outcome.