US private equity firm TPG Capital is poised win a significant slice of the European airline market, following British Airways' decision to side with the buyout firm in its bid for Spanish carrier Iberia, valued at about €3.7bn ($5bn).

TPG is also one of three bidders for troubled Italian national airline Alitalia, and this morning it welcomed the news that the Italian government is to offload its entire 49.9% stake in the company, source close to the buyout firm said.