BRUSSELS, March 20 (Reuters) -

Further consolidation of Europe's airlines was necessary to

keep the industry competitive, the CEOs of British Airways owner

IAG and Ryanair said on Wednesday, as the EU weighs a new deal.

"If we don't allow consolidation in Europe, we will destroy

airlines in Europe," IAG CEO Luis Gallego told an aviation

conference.

The European Commission is due to decide this week whether

to allow Lufthansa to acquire a 41% minority stake in

ITA Airways. EU antitrust regulators warned in January that the

deal could reduce competition in flights to and from Italy.

"(Portugal's) TAP has only survived through COVID because

the taxpayer...if you look at those airlines, AerLingus was

acquired by IAG ... those airlines have been much the better and

have a more secure future as part of bigger airlines. It does

need to be encouraged," Ryanair CEO Michael O'Leary said.