European airlines are increasingly focusing on smaller mergers and acquisitions as they face regulatory challenges to larger deals. The shift towards minority stakes is seen as a strategy to strengthen their competitive positions against rivals. This trend comes amid a broader bullish sentiment towards the European airline sector, despite the complexities involved in navigating regulatory landscapes. Analysts suggest that this pivot to bite-sized deals is a response to the regulatory push-back against full mergers, enabling airlines to limit costs and manage their growth more effectively.