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To address these issues in a crowded European market, airlines must aggressively pursue strategic alternatives, including collaboration (such as alliances and code-sharing arrangements) and consolidation (through mergers and acquisitions).The financial, regulatory, and political barriers to various strategic scenarios will determine the exact nature of each airline’s options.Arguably, each of the remaining six smaller carriers has a successful niche.None are financially troubled; all have a strong position in their markets with robust, defensible strategies.But there is more turbulence ahead: Brexit, increasing industry capacity, and competition for long-haul traffic from low-cost and high-­service Middle Eastern and Asian carriers are likely to undercut the profitability of European full-service carriers (FSCs).All kinds of airlines—from legacy FSCs to low-cost carriers large and small—need to come to grips with issues of scale, costs, and operating flexibility in an environment that demands ever more efficiency and agility.

The Company's brands include British Airways, Iberia, Vueling, Aer Lingus, IAG Cargo and Avios.

The US Department of Justice would intercede, arguing that each is already as large and dominant as it needs to be. Will six small carriers, each continue to get by with less than 5% shares?

In ten years, will we still see these same ten US carriers?

They each benefit from ‘capacity discipline’ exercised by the larger carriers, who are cautious about adding capacity ahead of demand.

And many are taking advantage of this by growing faster than the market.

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