Columba From Germany, joined Dec 2004, 6992 posts, RR: 4 Posted (6 years 11 months 4 weeks 1 day 2 hours ago) and read 3331 times:
According to several news sites in Germany the CEO of LTU Mr. Marbach will travel to Madrid tomorrow to talk about a possible acquisition of Air Madrid shares.
"Air Madrid is serving a very interesting market for us", a company spokesman is quoted. Air Madrid mostly flies to destinations in South American and the Carribean.
Also a big plus is that Air Madrid operates Airbus aircraft and LTU also has an all Airbus fleet.
Links in German: http://www.aero.de/news.php?varnewsid=2037
IberiaA319 From Spain, joined Sep 2005, 566 posts, RR: 41 Reply 3, posted (6 years 11 months 4 weeks 1 day 1 hour ago) and read 3233 times:
Actually five different companies were interested in acquiring Air Madrid shares:
-a Spanish company related with the lease of jets (?)
-an investment fund related to Swiftair
-Constructora San José, a Spanish construction group which is not interested anymore
Also Marsans might be interested now.
The offers were well under the real market value, according to Air Madrid's president, J. L. Carrillo, which should be around 120 million Euro.
Air Madrid has lots of debts. In 2004 they had a loss of 6.5 million Euro, in 2005 the losses were of 15.28 million Euro. Their debts are now well over 39 million Euro, they have to return the sold tickets of future months, plus they have to pay the chartered planes leased by the government.
Beaucaire From Syria, joined Sep 2003, 5252 posts, RR: 25 Reply 4, posted (6 years 11 months 4 weeks 1 day ago) and read 3157 times:
Despite their debt, Air Madrid (.or the remains..) could reveal as an astute investment for a carrier with a good feeder-infrastructure. I always thought that Air Berlin could have taken a stake in the company and manage it seriously.
If LTU thinks about Air Madrid- it would make sense...
LTU932 From Germany, joined Jan 2006, 13864 posts, RR: 51 Reply 6, posted (6 years 11 months 4 weeks 22 hours ago) and read 2962 times:
Does LT even have enough cash to buy NM? Besides, if they wanted to serve South and Central America, they could have done it themselves with their own metal. They already served SJO from 1990 to 1998, along with other destinations such as ADZ, so it's not like they don't have any experience in the region.
Bottom line: a buyout of NM by LT ain't gonna happen. They need the cash, LT is still somewhat cash strapped after all. They should think about getting back to profitability and start planning for the future fleet replacements, instead if flirting with the idea of them buying out another airline.
ORDagent From United States of America, joined Dec 2003, 823 posts, RR: 1 Reply 7, posted (6 years 11 months 4 weeks 20 hours ago) and read 2856 times:
LTU could improve their bottom line as S. America routes could be very profitable for them if they actually had flights that are reliable and punctual. The air Madrid brand needs to be retired. Even if a new company takes it over the brand has such a bad reputation that no amount of improvments will help. BTW does LTU still use the LTE (Luft Transport Espania) brand? If not it could be a good time to reinstate it.
Airevents From Germany, joined Jan 2002, 845 posts, RR: 3 Reply 9, posted (6 years 11 months 4 weeks 17 hours ago) and read 2662 times:
I think the main asset that LTU could bring into whatever liaison would happen between the two is their maintenance base in Dusseldorf, mainly dealing with A320/A330 aircraft. The maintenance base would see improved use and the Air Madrid aircraft less technical difficulties probably. From my armchair here I would say that Air Madrid´s strategy was perfectly right, offering direct flights at competitive price to a market which still seems to be underserved as demand was definitely very strong for NM flights. When establishing an operation that complies with what the schedule promises, NM could be a very successful airline. I don´t know exactly if LTU could operate Spain to South America in terms of traffic rights and somehow doubt it. Spain is definitely the main market to / from South America in Europe but at the same time South America is widely underserved from e.g. Germany and other European countries and Spain is on the way anyways, so why not establish a hub in MAD competing with IB and channelling passengers from Germany onto a number of flights to South America. Makes absolute sense and I think that LTU would be an airline that could help establish a more reliable operation here.
Aerosol From Germany, joined Oct 2000, 549 posts, RR: 0 Reply 14, posted (6 years 11 months 4 weeks 1 hour ago) and read 2299 times:
LTU is my hometown carrier, but I consider it as an airline which is not well managed.
The did not anticipate major market changes.
This merger idea is something which is creteated in a bar.
General rules for a succcessful merger:
- you should be financially sound and successful (no)
- you should not have other major projects (not sure but I thin they still are in the middle of a restructuring program)
- the market should be in/or shortly before a major upswing (well depends on the point of view but I think charter is on the way dowwn)
- the price of the takeover candidate (I do not know if they Air M. are publ. traded)
- Though this merger no major competitor is eliminated (Like LH/Swiss)
- Different languages and cultures (we dance the Walz, they flamneco)
EddieDude From Mexico, joined Nov 2003, 7437 posts, RR: 44 Reply 16, posted (6 years 11 months 3 weeks 6 days 21 hours ago) and read 2159 times:
Quoting LTU932 (Reply 6): Besides, if they wanted to serve South and Central America, they could have done it themselves with their own metal.
... which makes me ask: Can LT serve Latin American cities from Spanish airports? What does European law say about that? If LT is interested in acquiring NM, it is because they see great potential in the market served by NM. If LT is prevented from operating to Latin America non-stop from Spanish airports, then they cannot "do it themselves with their own metal" and therefore need to acquire an entity that is authorized to do so. If, on the other hand, LT has no restrictions to fly to Latin America from Spain, then I am in complete agreement with your posting.
IberiaA319 From Spain, joined Sep 2005, 566 posts, RR: 41 Reply 18, posted (6 years 11 months 3 weeks 6 days 18 hours ago) and read 2045 times:
According to the following article, Air Madrid says to its employees that the Spanish Ministry of Public works is blocking the sale of the company as their licence won't be granted in a short term. Also the feasability plan presented by some of the employees a few days ago was rejected by the Spanish Authorities.
Air Madrid will probably face some judicial procedures, they may be accused now of fraud, according to some Spanish attorneys. Apparently Air Madrid kept selling tickets when they already knew that the shutdown was inevitable.
IberiaA319 From Spain, joined Sep 2005, 566 posts, RR: 41 Reply 19, posted (6 years 11 months 3 weeks 4 days 23 hours ago) and read 1803 times:
Latest news: LTU is not interested anymore in acquiring Air Madrid shares. The main problems for the sale are the requirements of the Spanish Civil Aviation Authority, the temporary receivership and the possible bankruptcy, as well as several judicial procedures that will be started within the next weeks. The lessors are trying to get their planes back and lease them to other companies. Several Spanish and foreign carriers are interested in the former Air Madrid planes.