The director-general of the International Air Transport Association Giovanni Bisignani stated that he fully expects more airlines to merge in order to cut costs.

With a combined loss of $2.8 billion over the last year, the airline industry is doing whatever it can to crawl out from the financial disaster that has been the last 18-24 months.

Bisignani believes that airlines should receive regulatory support in order to make mergers go through quickly and efficiently when more than one country is involved.
Last week British Airways and Iberia came to an agreement on a partnership that will save the two airlines an estimated $533 million annually.

Two struggling U.S. carriers, United Airlines and US Airways, are also thinking of forming an alliance in order to stay afloat financially.

Source: AFP