Shelter in the storm: Europe’s smaller airlines face new round of consolidation

Europe’s airline sector is in for a bumpy ride after several months with no major airline failures. Rising fuel prices, excess capacity and relentless low-cost and foreign competition are making it tough for all but the biggest carriers to survive. Mid-sized and smaller operators will have to seek the shelter of larger airline operators, or even other corporates outside of the airline industry, without a sharp drop in fuel prices, says Scope Ratings. The most recent airline collapses in Europe took place last year, with the failure of Germany’s Air Berlin and UK-based Monarch. This year, merger speculation is on