While it is impossible to predict exactly who will merge with who, I think it is inevitable that there will be further consolidation. I was certain that GB would be merged with someone. But I got the wrong partner. I think in the end it was a matter of who would pay the highest price for Gatwick slots. Just look at what BA have done since then to confront the threat. Mainline is going to operate routes that were previously operated by GB. To use the LGW slots effectively EZY is going to have to do some rapid replanning. It all makes for a very dynamic environment.
In that environment you have to look at the strengths of the dominant players. There are only 2. RYR and EZY. They will have to acquire to go on growing. The best targets for them are companies who have no economics of scale but have regional specialisation. Jet 2, Globespan, Wizzair are obvious targets. I give these companies no more than 18 months of independent life.
I am sure that 2008 is going to be a year of huge change.
Akerosid please put in your own views.