AIRLINES
Alitalia and Air Berlin may now both be snapped up whole or carved up
Paris — A dogfight over the assets of troubled Alitalia and Air Berlin heralds a new shake-up in the European airline industry — but unless other carriers cut costs, they may meet a similar fate themselves, analysts warn. Facing insolvency after key investor Etihad threw in the towel after years of trying to keep them flying despite losses, both airlines may now be snapped up whole or carved up by rivals interested in getting hold of their aircraft and airport landing slots. But the overhaul is unlikely to end there. "The sector will continue to consolidate because the business models are in the process of changing," said Stephane Albernhe, managing partner at Archery Consulting. It was "an underlying trend" in Europe and the US, where four "consolidators" were in the lead: American, Delta, United, and low-cost Southwest, he said. Consultant Jerome Bouchard at Oliver Wyman said that in Europe, "there will be an oligopoly centred around Lufthansa, IAG [International Airlines Group] a...
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