Abstract
The deregulation and the overcapacity of many industries have led to a record level in external growth operations in the late 1990s (Doyle 2000). Nevertheless, development by acquisition tends to be selective in terms of industry sectors. In banking, insurance, pharmaceutical, airline and automotive industries, the number of mergers, acquisitions and alliances is particularly high compared to other sectors (MANDA 2007). The airline sector, in particular, has been very dynamic in terms of external development strategies over the past years. The airline market has been fragmented for a long time but the number of players in the air transport sector is now shrinking and has entered a phase of consolidation (Euromonitor 2007). In order to face this phenomenon, more airlines were tempted to achieve the critical mass needed to meet the high capital requirements of the industry. Similarly other industries, mergers, acquisitions and strategic alliances allow airlines to lower costs through rationalization and reduce competition and enhance market power. All these advantages are often viewed as strategic to face the new forms of competition, especially those coming from low cost airlines.
