It would be very hard to sell any link up with IAG, AF/KLM or Lufthansa as a merger. There may be some possibility with one of Lufthansa's subsidiaries though.
It's hard to see who would be a suitable merger partner. You'd assume that there would would be no desire to link up with an airline that is loss-making or has free-cash problems. You'd also want to see route networks that compliment each other and the potential for savings on admin and maintenance services.
Those conditions have me frawing a blank. SAS and Finnair look like the closest, but I really can't see any route synergies there.
Pretty much as I called it months ago, limited range of options as IAG / AF/KLM and Lufty are the biggies.
EY will NOT be allowed buy 49% nor anybody else will be allowed to hold just 49%. Stock Exchange takeover rules would require them to bid for the whole company and they can only own 49.9%.
The stock exchange reason behind this is to prevent someone owning 49.99% and then having someone else owning .02% and holding overall control of a company while destroying the investment of other shareholders.
Virgin was different as it was NOT listed on any Stock Exchange.