Summary Over the years, there have been several major mergers in the aviation industry. This has included the formation of some of the largest airline groups, including Air France-KLM and the International Airlines Group (IAG). Some airlines were forced to merge due to very difficult situations in the market.
" Unity is strength ". The airline industry was not immune to this truth. With the progressive deregulation of the industry and other developments in the market, incumbent carriers had to promptly adapt their management philosophy to new and rapidly changing economic conditions.
In the United States, a significant change brought about by deregulation was the birth of the low-cost business model, which soon translated into increased competition and the need to cut costs . Airline mergers soon proved to be an efficient strategy to ensure profitability and enhanced market accessibility while avoiding overcapacity. Furthermore, by matching their international and domestic networks, airlines achieved significant cost reductions in developing solid global hubs.
Over the last two decades, several airline mergers have occurred, some of which led to the birth of "mega airlines" destined to change the dynamics of the worldwide aviation industry. 5 The "royal" marriage of the sky: British Airways The merger, which was the beginning of British Airways, created one of the largest airlines in Europe. Merger happened in 1974 Merging airlines: British Overseas Airways Corporation (BOAC).