Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Factbox-The flight path of Airline M&A since 2001

Published 07/03/2024, 07:55 AM
Updated 07/03/2024, 11:06 AM
© Reuters. FILE PHOTO: An Airbus A320-214 passenger aircraft of Lufthansa airline, takes off from Malaga-Costa del Sol airport, in Malaga, Spain, May 3, 2024. REUTERS/Jon Nazca/File Photo
JBLU
-
LUV
-
DAL
-
ICAG
-
SAVEQ
-
SAS
-
ALK
-
003490
-
020560
-
AAL
-
CPCAY
-
SINGY
-

(Reuters) - The European Commission approved a long-awaited deal for Lufthansa to take a 41% stake in Italy's ITA Airways on Wednesday, in Europe's latest major consolidation.

The European sector has experienced a wave of consolidation in the last 20 years as small national airlines struggle to compete with larger global groups and budget carriers.

This comes as regulators fear the industry in North America is too concentrated, with some deals blocked by courts.

Here are some of the key deals globally since 2001:

2001- American Airlines (NASDAQ:AAL) reaches deal to acquire Trans World Airlines (TWA).

2004 - France's Air France and Dutch carrier KLM announce plans to merge. Dutch carrier Transavia, previously owned by KLM, also becomes part of Air France-KLM.

2005 - Lufthansa takes minority stake in Swiss Airlines. It completes the takeover in 2007.

2008 - Delta Air Lines (NYSE:DAL) merges with Northwest Airlines.

2009 - Lufthansa gets green light to buy Austrian Airlines. The same year, Lufthansa acquires a stake in Brussels Airlines, before taking it over fully in 2017.

2010 - United Airlines and Continental Airlines merge in an all-stock transaction and Southwest Airlines (NYSE:LUV) reaches a deal to buy AirTran Holdings.

2011 - IAG forms after British Airways acquires Spanish carrier Iberia. The merger agreement was signed in 2010.

2013 - IAG takes a 90% stake in Barcelona-based Vueling, which was already largely under Iberia's management.

American Airlines and US Airways unveil a $11 billion merger.

2014 - Etihad Airways invests 1.7 billion euros ($1.83 billion) and takes a 49% stake in Alitalia, ITA Airways' troubled predecessor.

2016 - Alaska Air (NYSE:ALK) announces a deal to buy Virgin America for $2.6 billion.

2019 - Cathay Pacific Airways (OTC:CPCAY) says it will buy budget carrier Hong Kong Express for $628 million.

2020 - Italy nationalises Alitalia, taking back ownership in March, after the carrier was privatised in 2009.

2021 - Korean Air says it will take over two-thirds of Korea's struggling second major carrier Asiana Airlines for $1.6 billion.

2022 - Tata-owned flag carrier Air India says it will merge with Vistara, a joint venture between Tata and Singapore Airlines (OTC:SINGY).

2022 - JetBlue Airways (NASDAQ:JBLU) wins a bidding war for Spirit Airlines (NYSE:SAVE) after the ultra-low-cost carrier terminates a $2.7 billion merger deal with Frontier Group and accepts its $3.8 billion buyout. The deal, however, is called off in 2024 after a U.S. judge blocked it on competition concerns.

2023 - Alaska Air announces a deal to buy Hawaiian Airlines for $1.9 billion, including debt.

2023 - Scandinavian carrier SAS announces a rescue deal to help it exit Chapter 11 bankruptcy, under which Castlelake will take a stake of about 32%, while Air France-KLM's will be around 20% and the Danish state will hold about 26%.

2024 - The European Commission approves the acquisition of Asiana by Korean Air.

ONGOING

IAG - AIR EUROPA

The European Commission is set to make a final decision on the deal by July as it assesses whether taking over Air Europa will make IAG unreasonably dominant in the Iberian peninsula.

TAP

Portugal's struggling national carrier has long been looking to find a private investor to take it over from the government.

IAG, Air France-KLM and Lufthansa have expressed interest.

TAP CEO Luis Rodrigues last month said that the new centre-right government should not sell 100% and should also bring in non-aviation investors, such as private equity.

SAS

© Reuters. FILE PHOTO: An Airbus A320-214 passenger aircraft of Lufthansa airline, takes off from Malaga-Costa del Sol airport, in Malaga, Spain, May 3, 2024. REUTERS/Jon Nazca/File Photo

The European Commission is evaluating Air France-KLM's offer to take a 19.9% stake in Scandinavian carrier SAS.

($1 = 0.9314 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.