Summary
AF-KLM seems to have taken their eye off of the core AF/KLM airline. There is a point of diminishing returns when it comes to economies of scale and they have reach that point! EU may take a greater interest should their be anymore consolidations. This assumes that Iberia remains a separate entity or does something with BA. Lufthansa done a better job of acquisitions, investments and starting new business and seems to be more strategic in their approach.
Analysis
AF-KLM (and to a lesser extent Lufthansa) are trying to take advantage of the current economic environment) to control the EU travel. I worry that they are taking their eye off the ball in terms of managing the airline dated. They are quickly becoming like other carriers in terms of profitability (read: Loss). I believe they already have great scale and a great alliance so I do not believe their is much to be gained from anymore economies of scale. That is the bad news...the good news is that the EU is probably had enough consolidation without raising any antitrust red flags...and therefore they will move their focus back to the strategy and the operations of the airline itself. This of course assumes that Iberia ends up with BA or remains independent...otherwise I could see them (or Lufthansa) looking at them.
Lufthansa seems to be more strategic than AF-KLM in acquisitions, investments and starting new businesses. because their are more strategic they have been operated a better airline and been more profitable.
