European Governments See Renewed Importance of National Airlines
Skift Take
European governments once believed they could rely on the market to ensure their links to the outside world. But many are starting to become more protective of their national airlines. In many ways, it is a return to the past.
The largest European airline CEOs often complain about too many carriers fighting for market share. Yet there's little indication more industry consolidation is coming soon, at least among the continent’s larger independent legacy carriers.
All it takes is one deal to get things moving. But there's some indication the rise of nationalism in European politics also may be influencing airlines, leading some to remain unaligned when they otherwise might be acquired by one of three major companies — Lufthansa Group, Air France-KLM, and International Airlines Group.
"The changes in [the] geopolitical landscape have led to many governments being more observant about national interests," Finnair CEO Topi Manner said during the IATA Annual General Meeting, an annual conference of airline executives.
Finnair might not be a contender for consolidation anyway, despite its small size. Its majority owner is the Finnish government, and Finnish politicians long have made it clear they do
