Scandinavian Airlines, Transavia and...Air Europa, with the same owner?: Gran Canaria tourism is concentrated

Whether tourism in the south of Gran Canaria has a medium-high purchasing power depends on the presence of national or flag airlines, as was said in the past. Gran Canaria Tourism has been consolidating this type of alliance for years so as not to find itself in the middle of so much low cost as happens on islands such as Tenerife or Lanzarote. Air Europa could end up in the hands of KLM and Air France, which have taken over Scandinavian Airlines (SAS).

The Air France-KLM Group has signed the agreement with SAS by which Air France, KLM, owner of Transavia, and SAS will operate codeshare flights and carry out interline marketing. This includes Air Europa, which has received Iberia's no to be acquired. If this operation is confirmed, regular, non-charter flights to Gran Canaria from the Nordic, Dutch, French and a high percentage of the peninsular market would be in a single hands.

European national airlines have struggled to compete with low-cost airlines such as Ryanair and Wizz Air and larger groups such as Lufthansa and Air France-KLM and IAG have come to revamp and save them. Air France and KLM operate their codes on flights to Gran Canaria from Copenhagen, Oslo and Stockholm, Paris and Amsterdam. Currently Air France and KLM operate nearly 200 weekly flights from Paris and Amsterdam to Copenhagen, Oslo and Stockholm, while SAS has 109 weekly flights from those three airports to Paris and Amsterdam.

In the agreement with SAS, in which the American investment firm Castlelake and Air France-KLM entered as new main shareholders together with the Danish state, one of Europe's traditional brands. Air France-KLM will only take a 19,9% ​​stake in SAS and may have limited influence on the renewal of the airline, which has struggled with fragmentation at its hubs in Denmark and Sweden. Still, this distancing approach may be attractive to TAP.

The airline industry has long pointed to Portugal's national airline, TAP, as the next potential acquisition target on the European scene, especially now that the European Commission has approved Lufthansa's stake in Italy's ITA Airways. But political changes in Portugal have delayed a possible sale. Lufthansa, Air France-KLM and IAG have all expressed interest, raising expectations that a bid for the airline could emerge this year.