johnnybgoode
Posts: 2144
Joined: Wed Jan 03, 2001 8:47 pm

Lufthansa And Swissair In Codeshare Talks

Mon Jul 30, 2001 9:02 pm

Swissair, Lufthansa in talks: report
Airlines may sell seats on each other's planes


Click for large version
Click here for full size photo!

Photo © James Richard Covington, Jr



Swissair and Deutsche Lufthansa are in talks about selling seats on each other's flights as the troubled Swiss airline looks for help, Swiss Sonntagszeitung reported on Sunday.
During talks about the well-reported merger of their computer units, Swissair Chief Executive Mario Corti and Lufthansa Chief Executive Juergen Weber began discussions over code-sharing, the paper reported, citing an unnamed company source.

Swissair stumbled to a 1.9 billion (euro) loss last year after taking stakes in loss-making regional airlines, such as Belgium's Sabena. Since, the airline's CEO quit in March and his replacement is selling off the holdings as well as profit making non-airline units to win cash.

(...)Such a cooperation would only be lucrative for Swissair if it included trans-continental routes or a merger of the company's catering units, the paper said. The move could also help CEO Corti form a luxury airline as such a move makes it unattractive to partner American Airlines.

source: FTMarketWatch


Click for large version
Click here for full size photo!

Photo © Peter Unmuth - Vienna Aviation Photography



------------------------

interesting, isn´t it?
it´s not the first time SR and LH are in codeshare talks. i believe in ´96 or´97 LH was lobbying SR to form an alliance but eventually SR rejected.
but i don´t think if such an agreement would come to be it would go much beyond a deep codeshare partnership because of LH´s heavy presence in central european and because of the massive scrutiny LH already faces from european authorities...

regards
daniel
If only pure sweetness was offered, why's this bitter taste left in my mouth.
 
DLL10
Posts: 133
Joined: Mon Jul 30, 2001 3:09 pm

RE: Lufthansa And Swissair In Codeshare Talks

Mon Jul 30, 2001 9:13 pm

Well here we go. Another dumb move of the all so famous Swissair. I don't think that such a step would have any advantage for Lufthansa, unless SR joins the Star Alliance and I don't expect SR to do that. And even if, the chances for a success are fairly questionable. Swissair of course has to hold on to any opportunity that it can find, as their management has run the once very solid company and its immaculate reputation into an almost hopeless position, on the way ruining or severely damaging other airlines with questionable partnerships such as Sabena and LTU. I guess, if LH waits another few years, they can buy the whole SR leftovers for next to nothing.
 
myself
Posts: 206
Joined: Sat Feb 17, 2001 10:04 pm

RE: Lufthansa And Swissair In Codeshare Talks

Tue Jul 31, 2001 7:06 am

DLL10,

What else did you think Lufythansa has in mind ?

They just stated in a press conference that they have a 1 billion euros war chest to spend on strengthening their leading position in aviation.


And why else do you think ex-Lufthansa's Ch. Müller is now CEO at Sabena's ?


Regards

 
johnnybgoode
Posts: 2144
Joined: Wed Jan 03, 2001 8:47 pm

RE: Lufthansa And Swissair In Codeshare Talks

Wed Aug 01, 2001 1:03 am

somehow, i don´t know what to think of this. holding such talks doesn´t mean they will eventually end in a partnership, and i do highly doubt that Swissair will enter Star if this deal becomes reality.
given the fact that the LH/SK/OS alliance has been massively scrutinized (almost 100% market share in the respective market) that would become more worse if SR would join the picture.
but still, if LH and SR are holding such talks there are certainly some crucial benefits which outweigh possible restrictions.

if there haven´t already been the partnership between OS and LH, i think LH and SR would be an even more powerful "couple" and LH and SR certainly fit well together and in many divisions SR and LH work closely together, maintenance (shannon), training and then there´s the thing about the Lufthansa Systems Group being in merger talks with Swissair´s Atraxis Group.

perhaps it´s once again the same thing like it was with OS. many people suggest that the reason why the Austrian Airlines Group entered star and not skyteam, by which it was also heavily courted, might be the fact that OS feared LH could be overmighty in such close home-markets and it would be better to join forces than to compete against the much bigger Lufthansa.
i don´t know, that´s just an assumption.

cheers
daniel
If only pure sweetness was offered, why's this bitter taste left in my mouth.
 
godbless
Posts: 2680
Joined: Tue Apr 04, 2000 5:26 am

RE: Lufthansa And Swissair In Codeshare Talks

Wed Aug 01, 2001 3:49 am

It looks as if we will one day see airlines in europe like we see now in the US... just a few but then real real big ones... If this would go on like this I guess we would have 3 major airlines in europe in a few long years... Lufthansa, Air France and British Airways.
But I doubt that Brüssel will let this happen since OS/LH have nearly 100% market-share in central-europe and so it would be hard to add SR...
But I don't know if Brüssel can say anything against it since Switzerland ain't in the EU.

regards,
Max
http://www.IntAviation.de.vu
 
johnnybgoode
Posts: 2144
Joined: Wed Jan 03, 2001 8:47 pm

RE: Lufthansa And Swissair In Codeshare Talks

Thu Aug 02, 2001 1:58 am

oh yes, brussel can say anything against this deal.. it´s not necessarily required that the respective parties (airlines) are from EU member countries.
f.e. the EU had to approve the UA/US merger as well, which it did.
there is a certain rule: EU law requires the Commission to review those deals because the companies meet minimum sales thresholds. All deals involving companies with Europe-wide sales of at least 250 million euros ($214.5 million) each and combined annual worldwide sales totaling at least 5 billion euros ($4.3 billion), must be cleared by the Commission, regardless of where they are based.

cheers
daniel
If only pure sweetness was offered, why's this bitter taste left in my mouth.