Star Alliance carrier Lufthansa's move to take controlling stakes in UK carrier bmi and German regional operator Eurowings, disclosed on 29 October, marks the latest evidence of the German carrier's determination to take a leading role in consolidation in Europe.
Lufthansa, which already controls Swiss International Air Lines, earlier this year struck a deal to buy a stake in Brussels Airlines and remains in the frame to buy into both Star partner Austrian Airlines and the planned relaunched Alitalia operation.
Lufthansa's consolidation moves
- Brussels Airlines - Under a two-stage deal, approved by the respective shareholders in September, Lufthansa is to initially acquire a 45% stake in Brussels Airlines parent company SN Airholding for €65 million. It holds the option to acquire the remainder of the company in 2011
- bmi - the UK carrier's chairman Sir Michael Bishop has exercised a put option for his stake of 50%, plus one share. The transaction is not expected to complete before 12 January next year and would increase Lufthansa's stake in the carrier to 80%
- Eurowings - Lufthansa already holds a 49% stake in the Dortmund-based regional carrier and has management control following an earlier agreement on voting rights. Eurowings' holding company, controlled by Albrecht Knauf, has now accepted an irrevocable offer to acquire the remaining 50.9% stake.
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- Austrian Airlines - Austrian state holding company OIAG, which launched a tender to sell a 42.75% stake in Austrian Airlines Group, has sought an extension to the privatisation tender which was due for completion on 27 October. Lufthansa submitted an offer for the carrier, Russia's S7 Airlines did not submit an offer but outlined the basis on which it would continue talks and remains interested
- Alitalia - Italian investors are in the final stages of efforts to relaunch a new debt-free Alitalia operation and have been courting both Lufthansa and Air France, with a view to the partner taking a minority stake of in the region of 10% to 20%in the new operation.
- SAS - The Scandinavian airline group in September disclosed it is examining possible structural changes to the group, amid suggestions that its Star Alliance partner Lufthansa has been discussing a possible tie-up between the two companies. Lufthansa has not commented.
Source: Airline Business
