Airline Consolidation Needs To Take Off

CFW expects airline M&A activity to take off in the second half of 2009, following on from US$22,278 in M&A deals in 2008 and US$1,859 to date in 2009. Last year, high fuel costs and low consumer demand, made M&A an attractive solution for many of the industry's players, and this year consolidation is still very much on the cards as conditions have only marginally improved. Indeed, the International Air Transport Association (IATA) stated that airline losses in the first three months of the year have been much more severe than expected as the economic crisis continues to batter demand.

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