Much has been mooted in recent times about a shake-out in Europe's airline sector. The high-profile collapses of Spain's fourthlargest airline, Spanair, and Hungarian national airline, Malév, have contributed to shrinking the mid-market sector. However, so too has straightforward merger activity in the form of International Airlines Group's acquisition of bmi.

Elsewhere in the industry rising fuel prices and the drive to reduce cost base are prompting further M&A activity. Accordingly, there have been moves by aerospace manufacturers to rationalise their supply chain and consolidate in complementary areas and to harness some cross-border reach.

The trend over the last couple of years in the European airline and aerospace sectors has shown growth. Judging by the number of transactions this year to date, things will need to improve markedly in H2 2012 in order not to buck the trend.

European Aviation M&A Transaction Trend

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With this being the year of the 2012 UEFA European Football Championship and the Summer Olympic Games, both being held in Europe, many expect that an increase in passenger levels will have a beneficial effect throughout the industry.

Selected Recent European Aviation M&A Transactions

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