AJMIA From United States of America, joined Dec 2005, 739 posts, RR: 14 Posted (7 years 9 months 2 weeks 1 day 22 hours ago) and read 2722 times:
From oneworlds's eword Daily Newsletter 4/30...
Quote: Brussels and Lufthansa make no comment on take over speculation
Brussels Airlines confirmed yesterday that it is discussing joining one of the three global alliances but declined to comment on media speculation that it could be bought by Star's Lufthansa.
It said it would only consider the "possible financial participation of a new shareholder" on condition that Brussels' own autonomy, identity and sustainable future were guaranteed.
It added that it was in talks "with various partners to establish the conditions of a possible participation in one of the three main commercial alliances" although "no decision has been made."
Lufthansa's Chief Executive Wolfgang Mayrhuber, speaking at the German carrier's annual shareholders' meeting yesterday, said the group intended to take an active part in the consolidation of the European industry - without mentioning Brussels Airlines.
He confirmed his company had resolved to exercise its option to buy the majority of its Star partner bmi British Midland in two stages in the next two years, with the timing and the price already agreed with bmi's majority owners.
Beyond that, he said the company would "keep a cool head" and examine any possible acquisition thoroughly to see if it made sense both financially and strategically. It would not rush into any more take overs given the current economic uncertainty.
I really hope SN still decides to go with oneworld. The AA/SN/9W BRU focus mini-hub would be awesome.
Qazar From Canada, joined May 2006, 341 posts, RR: 0
Reply 1, posted (7 years 9 months 2 weeks 1 day 14 hours ago) and read 2610 times:
Lufthansa definetly has the resources to acquire SN, but the focus has been and will be the upcoming announcement of BMI.
Furthermore, LH is known to capitalise on the strength of the brand recognition of the airlines it acquires, and especially the important identity of these markets and the national pride people see in having their own national airline. SN Brussels is stronger keeping its own name than getting repainted in LH colours and getting snubbed by the Belges, and LH knows that.
What LH is interested in, with market consolidations, is a single-lined management approach, where the synergies and savings are accomplished through:
- Proper coordinated scheduling;
- Use of a multi-hub system: Taking advantage of concentration of population in a different geographical area.
- Better slot usage: Transferring flights to secondary hubs in order to take as much advantage of slot constrained airports such as Frankfurt;
- Fleet commonality: As LH and Swiss fleets are identical, both BMI and SN fit into the equations with their A320 and A330 family of fleet. this also has financial reprecussions on such aspects as maintenance schedules, aircraft replacements, and crew training;
- Economies of scale: Larger orders result in better negotiation power with aircraft manufacturers and therefore better prices. The aircraft can later on be distributed through the Group's individual airlines - as seen recently with the A333 order that went to LX.
Therefore LH is interested in far more than just painting SN planes with the LH crane logo.
I think the SN Brussels purchase is a very logical and smart thing to do. It will give them access to more destinations in the African sub-continent and O&D access to Brussels - home to the EU = premium passengers... Think of all those politicians travelling with heavy wallets full of tax payers money... I never sat next to a politician in Economy class - that's all I'll say.