The airline industry is highly fragmented, especially in Europe. In domestic European traffic, the five
largest airline groups have a combined market share of less than 50%. In the much more profitable
US market, the figure is now at around 90%. In the past, the consolidation of the airline industry
required from an economic perspective was often delayed by offers of financial assistance from
governments. However, the airline industry has undergone substantial consolidation in recent times
and is heading for more because of the global recession. For instance, in 2013, American Airlines
and US Airways merged together to create one of the largest airlines in the world. Earlier in 2011,
British Airways and Iberia created a new group, IAG.