EUROPE: Private equity demonstrates appetite for European airlines.
Private equity house TPG (formerly Texas Pacific Group) is, in conjunction with British Airways, exploring an approximately $5 bn bid for Spanish flag-carrier Iberia. It is also one of three short-listed bidders for the Italian government's 49.9% interest in Alitalia.
British Airways currently owns 10% of Iberia and has first refusal on a further 30% so is able to thwart alternative bidders.
It has been argued that British Airways should be focussing its attention on growth markets in Asia rather than consolidation in the relatively stagnant European arena.
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