Analysts see Europe heading to USstyle consolidation
Italy saw Lufthansa deal as only way forward
But MA could be a distraction amid stiff competition

LONDONROME, June 2 Reuters Lufthansa39;s purchase of a minority stake in Italy39;s lossmaking ITA Airways injects fresh momentum into a wave of consolidation in Europe39;s fragmented aviation market that could see more midtier national carriers snapped up.

The German group will be judged on whether it can make the successor business to Alitalia profitable in coming years, potentially setting the scene for large airline groups to swoop on more national carriers that have fallen prey to competition.

It39;s further evidence that consolidation in the European airline industry is continuing and in my view necessary, Lufthansa CEO Carsten Spohr said of the deal last week.

Success depends on scale and the ability to combine the strength of our operations under one roof.

Portugal39;s TAP, bailed out by the government during the pandemic, and Scandinavia39;s SAS, trying to emerge from bankruptcy proceedings, have both struggled to compete with lowcost rivals such as Ryanair and Wizz Air.

Lufthansa, Air FranceKLM, and British Airways owner IAG have all laid the groundwork for potential bids for TAP as the Portuguese government looks to sell it off.

You39;ve got a lot of other carriers who are only there because of the perceived need to have a national flag carrier and they probably find life quite difficult, said…