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VCEflyboy
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Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 1:34 pm

Lufthansa and Etihad seem to be strengthening their partnership after their recent Air Berlin cooperation.
Lufthansa is ready to acquire up to 45% of Alitalia, while Etihad will maintain 49% ownership.
Also Lufthansa will be absorbing Air Berlin in its entirety.

Source in Italian only: http://economia.ilmessaggero.it/economi ... 31485.html
 
a380787
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 2:18 pm

what a turn of events, considering LH was one of the single most vocal (if not *THE* most vocal) opponent of anything ME3. Maybe the BA-QR equity/JV deal has finally forced LH's hand.

LH absorbing AB entirely might be up against major anti-trust roadblock since too much German market share will fall into the combined entity. As for Alitalia, it might reasonably be sound considering AZ was so dissatisfied with the AF-KL dominance within Skyteam that they yanked out of the Transatlantic JV pact. It can also help provide some synergy with LH-owned Air Dolomoti (the Italian carrier that hubs at MUC, i know, sounds like an oxymoron).
 
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 2:28 pm

I must admit that it's hard to imagine how regulators could possibly allow Lufthansa to absorb its largest German rival and own/influence if not effectively control yet another European network carrier. It seems like if Lufthansa were allowed to absorb Air Berlin and acquire a near-majority in Alitalia, on top of Austrian, Swiss and Brussels, MOL wouldn't be the only one screaming about double standards in Brussels.
 
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 2:31 pm

Ironically Ryanair itself might be so big now that they are considered to be a counterweight against some LH-monopoly on the market by antitrust authorities.
 
MIflyer12
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 3:00 pm

a380787 wrote:
As for Alitalia, it might reasonably be sound considering AZ was so dissatisfied with the AF-KL dominance within Skyteam that they yanked out of the Transatlantic JV pact.


That's not how Lucky reported it in the Boarding Area. The TATL JV was to remain. Did this develop differently?

This refers specifically to the joint venture between Alitalia and Air France/KLM, and is separate from the transatlantic joint venture which Alitalia has with Air France/KLM and Delta (the largest transatlantic joint venture there is). I believe the transatlantic joint venture is valid for another five years, so I doubt that will be discontinued at the same time.

http://onemileatatime.boardingarea.com/ ... o-skyteam/
 
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seahawk
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 3:04 pm

Never going to happen. The regulators will rather see AB go broke and see the available slots divided between FR and U2.
 
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 3:04 pm

MIflyer12 wrote:
a380787 wrote:
As for Alitalia, it might reasonably be sound considering AZ was so dissatisfied with the AF-KL dominance within Skyteam that they yanked out of the Transatlantic JV pact.


That's not how Lucky reported it in the Boarding Area. The TATL JV was to remain. Did this develop differently?

This refers specifically to the joint venture between Alitalia and Air France/KLM, and is separate from the transatlantic joint venture which Alitalia has with Air France/KLM and Delta (the largest transatlantic joint venture there is). I believe the transatlantic joint venture is valid for another five years, so I doubt that will be discontinued at the same time.

http://onemileatatime.boardingarea.com/ ... o-skyteam/


If that's the case I stand corrected. I've always (incorrectly) thought they were the same item.

http://corporate.alitalia.it/en/network ... tures.html
 
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VCEflyboy
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 3:20 pm

Well LH was up 3% on the stock exchange so it might be a sign experts expect regulators to ok the transaction.

I believe the European system is getting the shape of the US landscape with 3 big legacy groups (LH Group + SAS? / IAG + Finnair? / AFKL + Wizz Air?) plus one big low cost (Ryanair).
 
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 3:28 pm

seahawk wrote:
Never going to happen. The regulators will rather see AB go broke and see the available slots divided between FR and U2.

That's it. Nothing to add (at least concerning the AB-component of this rumour. Cannot comment on AZ, EY...)
 
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VCEflyboy
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 4:05 pm

If AB goes bankrupt new BER will be Ryanair central. Nobody wants that. Maybe Boeing will be making double deck 737s so those multi million dollar a380 gates will not go to waste.
 
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mercure1
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 4:10 pm

Sorry but I cannot see LH acquiring stake in AZ and the regulatory challenge as result.

Even when smaller AFKL looks at acquiring additional stake in AZ during 2012/2013 there were concerns.
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 4:18 pm

N14AZ wrote:
seahawk wrote:
Never going to happen. The regulators will rather see AB go broke and see the available slots divided between FR and U2.

That's it. Nothing to add (at least concerning the AB-component of this rumour. Cannot comment on AZ, EY...)

Not only is there is plenty of precedent of this happening in Europe but also, flag carriers have always enjoyed special treatment. Competition either gets absorbed or their attempts to expand are met with opposition from politicians and regulators. That's how most European countries only have 1 major airline. In France, AF absorbed Air Inter and UTA, no problem. In Portugal, TAP absorbed Portugalia, no problem.
 
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 4:34 pm

Alitalia now denies having any discussions with LH, responding directly to the report in the OP's link:
http://uk.reuters.com/article/uk-alital ... KKCN12I1QW
Last edited by redzeppelin on Tue Oct 18, 2016 4:38 pm, edited 1 time in total.
 
SCQ83
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 4:36 pm

VCEflyboy wrote:
If AB goes bankrupt new BER will be Ryanair central. Nobody wants that.


It would be like BCN:

- A local low cost backed by the "national group" (VY in BCN backed by IAG and Eurowings in BER backed by LH)
- Ryanair the largest international low-cost
- The rest split between easyJet and Norwegian (which are already quite big in Berlin).
 
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 4:41 pm

VCEflyboy wrote:
If AB goes bankrupt new BER will be Ryanair central. Nobody wants that. Maybe Boeing will be making double deck 737s so those multi million dollar a380 gates will not go to waste.

I suspect at this point there will be plenty of people happy to see any plane parked at those multi million dollar gates even if it was a CRJ200.
 
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VCEflyboy
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 4:42 pm

SCQ83 wrote:
VCEflyboy wrote:
If AB goes bankrupt new BER will be Ryanair central. Nobody wants that.


It would be like BCN:

- A local low cost backed by the "national group" (VY in BCN backed by IAG and Eurowings in BER backed by LH)
- Ryanair the largest international low-cost
- The rest split between easyJet and Norwegian (which are already quite big in Berlin).


Big difference is Barcelona goes out of its way to go against national interests as their independentist ambitions are quite well known.
Germany is facing a tough election and have spent billions of euro and huge political capital over the years to launch BER into a modern international hub and even before the opening has been marred by countless scandals.
 
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 4:49 pm

Nothing much for the Regulators. The market is not Germany, the market is the EU single market area. Even if AB would e wholly absorbed by LH, there would be enough competition y other EU market based Airlines, like FR, EZY Wizz etc
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 6:26 pm

Noshow wrote:
Ironically Ryanair itself might be so big now that they are considered to be a counterweight against some LH-monopoly on the market by antitrust authorities.

Maybe to get through any regulator hurdle, LH may agree to sell ABs 737s to FR. Seeing as it would be an odd fleet type for LH, it doesn't sound like a terrible deal on paper.
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SCQ83
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 6:45 pm

VCEflyboy wrote:
Big difference is Barcelona goes out of its way to go against national interests as their independentist ambitions are quite well known.
Germany is facing a tough election and have spent billions of euro and huge political capital over the years to launch BER into a modern international hub and even before the opening has been marred by countless scandals.


I don't understand what you are talking about.

Vueling a private company owned by IAG, which is based in London and Madrid. So the Catalan government really doesn't have much to say (as much as they would like) on what VY does or does not. Otherwise what is their alternative? Ryanair? ;). They tried it with Spanair and the rest is history... Even a few weeks ago, IAG changed most of the management of VY and now it is far less "Catalan".

If VY had +100 routes at one point (Spanair bankrupt and Ryanair and Norwegian not very developed in BCN) was because BCN is a large market but extraordinary low-cost and tourism-oriented. Exactly like Berlin.

As for the BER situation, I was talking about an hypothetical opening of BER.

I agree with you though, that probably Eurowings will face a similar situation like Vueling in BCN (in fact EW and VY have quite a lot of similarities). Ryanair has more optimised costs, better service, much better brand recognition... nobody would be surprised if tomorrow they open BER, Ryanair starts 20 or 30 routes like there is no tomorrow (in addition to what they have in SXF). Eurowings though could build a "Berlin-Hub" (like Vueling has in BCN) doing some odd connections between Western/Southern-Europe and Eastern/Northern-Europe.
 
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 8:16 pm

Air Berlin only has 4 B737NG now.

And one of those is B737-700.
 
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 8:51 pm

seahawk wrote:
Never going to happen. The regulators will rather see AB go broke and see the available slots divided between FR and U2.


It's an election year, the EY involvement has been a hot topic for years in Germany, and EY forgot to give Angie a VIP 345 as they did for Matteo. Honestly German government feels much more comfortable with LH taking on AB than EY's continued involvement. EY will still have the likes of AZ and JU in the near term. U2 and FR already own SXF, and they would expand quite a bit if BER were to ever open.

VCEflyboy wrote:
If AB goes bankrupt new BER will be Ryanair central. Nobody wants that. Maybe Boeing will be making double deck 737s so those multi million dollar a380 gates will not go to waste.


AB is already bankrupt, it's been kept on life support by EY. Multimillion is chump change for BER management and the local governments that continue to burn up billions of yet to be funded money in their endless expansion requests that continue to be made in spite of still not having a fire system (and thousands of other faults) in the existing structures. BER is structurally planned for a mix of premium and tourist traffic when in reality the premium demand is underdeveloped unless you're counting German government or Hollywood actors flying in 2-3 times a year.

No business need for A380s there, but then again Berlin government wanted a 3rd hub with SXF > BER transformation, something unrealistic to begin with given that not a single DAX 30 company has their seat in BER in the post-1945 world. Try to picture an A380 at BER in all Y config, it will never happen. Maybe a LH 748 once a year for Berlin Philharmonics charter or during ILA as an exhibit in the category of "this could have been your prize Berliners had you managed to have a government that able to attract enough businesses to Berlin" (and of course if ILA is still held at SXF if BER ever opens)

mercure1 wrote:
Sorry but I cannot see LH acquiring stake in AZ and the regulatory challenge as result.

Even when smaller AFKL looks at acquiring additional stake in AZ during 2012/2013 there were concerns.


Right, LH Italia didn't work and neither would AZ. Otherwise LH Italia would have never been started to begin with.

SCQ83 wrote:
As for the BER situation, I was talking about an hypothetical opening of BER.

I agree with you though, that probably Eurowings will face a similar situation like Vueling in BCN (in fact EW and VY have quite a lot of similarities). Ryanair has more optimised costs, better service, much better brand recognition... nobody would be surprised if tomorrow they open BER, Ryanair starts 20 or 30 routes like there is no tomorrow (in addition to what they have in SXF). Eurowings though could build a "Berlin-Hub" (like Vueling has in BCN) doing some odd connections between Western/Southern-Europe and Eastern/Northern-Europe.


Yes, BER is similar to BCN. Non-TUI AB short and medium haul can go to EW. Lots of new destinations ex-BER for LH Group. Long haul can go to LH Jump, AB has some C cabin there, Jump is similar enough. TUI can go to hell, the 738s where to be phased out this year and the 737s by 2019, though with the departure of TUI AB into a separate business unit that no longer applies. When LH considered doing a third "hub" at BER around 2010/11, it was *always* in the context of having that be a 4U / EW hub, not an actual LH hub. BER is still a tourist town on the balance, much like BCN when you look at the passenger mix. Very sporadic business class demand.
Last edited by ua900 on Tue Oct 18, 2016 8:56 pm, edited 1 time in total.
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 8:54 pm

mercure1 wrote:
Sorry but I cannot see LH acquiring stake in AZ and the regulatory challenge as result.

Even when smaller AFKL looks at acquiring additional stake in AZ during 2012/2013 there were concerns.


Okay - but how come LH can absorb Brussels Airlines without invoking the same ire from the same regulators?
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ua900
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 9:06 pm

vhtje wrote:
mercure1 wrote:
Sorry but I cannot see LH acquiring stake in AZ and the regulatory challenge as result.

Even when smaller AFKL looks at acquiring additional stake in AZ during 2012/2013 there were concerns.


Okay - but how come LH can absorb Brussels Airlines without invoking the same ire from the same regulators?


SN has had a close business relationship with LH Group for years. When LH acquired the 45% stake in 2008, there was an option baked in to buy the other 55% down the line. If you look at their short and medium haul product, you'll see that it nicely aligns with EW. Long haul is basically in alignment with Jump, and given SNs particular strength in Africa, it's a good addition to LH Group. Also, SN never bled money like AZ and actually turns a modest profit these days.
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 9:17 pm

bennett123 wrote:
Air Berlin only has 4 B737NG now.

And one of those is B737-700.


And to make things even worse, they are not owned but just leased.

Will Etihad, Pegasus and all the minor shareholders of the failed Air Berlin ever find a white knight (spell this: M-O-R-O-N) who would acquire the billions of debts of Air Berlin? Not under normal and legal conditions!
 
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 9:35 pm

About LH Italia, their main goal was to serve destinations directly from Milan presumably for a premium than having to transit via FRA.
It turned out people would pay a premium to just fly via FRA ex LIN because it's so much more convenient. That is an anomaly about Milan.

Nevertheless LH has always been interested in the Italian market whcih is their largest after Germany and the USA. They did look into AZ but they didn't buy it I assume because it was a financial mess. Now they may not be minting money but at least their books are in order and they're back in the black after years of losses.
 
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 9:40 pm

PanHAM wrote:
Nothing much for the Regulators. The market is not Germany, the market is the EU single market area. Even if AB would e wholly absorbed by LH, there would be enough competition y other EU market based Airlines, like FR, EZY Wizz etc


I'm not sure how it is for aviation but in the case of the EU single market, the local regulators still have anti-trust authority in addition to EU regulators (at least in the one European merger I've been through).
 
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Re: Rumour: LH to acquire AB, 45% of AZ

Tue Oct 18, 2016 11:35 pm

LH buying AZ is very interesting. If this occurs, can we see AZ switch over to Star ?
 
PanHAM
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Re: Rumour: LH to acquire AB, 45% of AZ

Wed Oct 19, 2016 6:26 am

I doubt that this will happen, but if, the Situation would be so that AB is handed over to 7 bought by LH without old debts. Taking off the burden AZ without old debts as well would be enough burden alone that LH could take off Etihad's shoulder.

As to the Regulators, LH has a market share over 50% only at their hubs. That is normal, how else could hubs operate.Overall in Germany, even LH+AB combined is less than 50% and the market is open to anyone and FR as well as EZY have ambitions to establish hub by-passing routes. Or, like in MUC where AFKL's Transavia is trying to establish.

In the past, like when OS was bought, the Regulators imposed that a third carrier on a route like FRA VIE had to be given Slots. That was Adria with 2 or 3 CRJs daily, now who wants to fly on a CRJ when 320s are available? Such rules are BS. The market is inside Europe and to and from Europe, , no longer the single states where a corporation is registered.

Biut back to the title, why would LH Need to buy AZ when they are already establishd at the best Italian hub Airport which by all means is MUC?
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Re: Rumour: LH to acquire AB, 45% of AZ

Wed Oct 19, 2016 6:28 am

It is impossible as LH would command the vast majority of all slots on all slot restricted airports in Germany, which are also the 4 biggest.

When AB fails the slots grandfather rights of the slots are gone and they must be distributed freely among all interested airlines which a focus on allowing competition, which means they should go to FR and U2 mostly and not to LH.
 
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Re: Rumour: LH to acquire AB, 45% of AZ

Wed Oct 19, 2016 6:44 am

Why would EY give up on AZ so quickly? Up to now with the other airlines of the EY Alliance, they have shown to be in it for the long term.
I agree that LH would love to have it; they have always had a longing for Italy - see LH Italia. But I don't think EY would give AZ up.

As for AB, I think that in the short term, the breakup of the company will occur as planned - one part to EW, one part to a new leisure carrier, one part remaining as AB. EW will already be getting lots of very very attractive slots with the current deal. For political - not competition - reasons, AB won't be fully absorbed...yet.
 
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Re: Rumour: LH to acquire AB, 45% of AZ

Wed Oct 19, 2016 12:44 pm

I would think this is exactly what it is: a rumour.
I don't see LH acquiring AB in its entirety, and the German govt would not allow this anyway.
I also don't see LH acquiring a stake in an airline that is deeply rooted within SkyTeam, and why would Etihad sell right after investing so much in AZ?
 
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Re: Rumour: LH to acquire AB, 45% of AZ

Wed Oct 19, 2016 12:50 pm

According to the OP the rumor is that LH would acquire 45% of AZ while Etihad maintains their current 49%. So AZ would be 49% EY, 45% LH, 6% other (CAI - Compagnia Aerea Italiana?).
 
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Re: Rumour: LH to acquire AB, 45% of AZ

Wed Oct 19, 2016 1:07 pm

oldannyboy wrote:
I would think this is exactly what it is: a rumour.
I don't see LH acquiring AB in its entirety, and the German govt would not allow this anyway.
I also don't see LH acquiring a stake in an airline that is deeply rooted within SkyTeam, and why would Etihad sell right after investing so much in AZ?


The German Government sees mainly the Jobs and if such a take over would save Jobs they would not object. However, the government cannot dictate that, they would have to observe the rulings of the Mergers and akquisitions board as well as the Courts who may be called by affected parties.

I am with you that LH Needs ad wants AZ as bad as a hole in the head. They have enough Trouble with the German unions and would cetianly not want the Italia unions as well.

Etihad, OTH, seems to be desparate to get that bottomless well out of their Hands and I don't only man AB and AZ.
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Re: Rumour: LH to acquire AB, 45% of AZ

Wed Oct 19, 2016 3:27 pm

iadadd wrote:
LH buying AZ is very interesting. If this occurs, can we see AZ switch over to Star ?



Indeed! It seems that the rumour is unclear, but what I understand, Etihad is looking for a way out. So the assumption is that LH would purchase Etihad's share.

http://www.maltatoday.com.mt/news/national/70491/etihad_threatens_to_withdraw_from_alitalia_investment

I have long felt that AZ was in the wrong alliance with sky team. Look at their North American destinations? Why no SFO? What is holding them back? The JV with DL? If that is the case, they need to get out & fast! Their new strategy is quite frankly "garbage" & doesn't capture the true essence of air travel to Italia. FCO - AUH, SCL?? What a joke!

A lot of risk involved for LH but Alitalia is a good fit for starlliance. I would Launch FCO - SFO, EWR & increase ORD & LAX in a meaningful way! As well HD the heck out of their wide body fleet! (Tourist traffic)
 
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Re: Rumour: LH to acquire AB, 45% of AZ

Wed Oct 19, 2016 3:41 pm

oldannyboy wrote:
I would think this is exactly what it is: a rumour.
I don't see LH acquiring AB in its entirety, and the German govt would not allow this anyway.
I also don't see LH acquiring a stake in an airline that is deeply rooted within SkyTeam, and why would Etihad sell right after investing so much in AZ?

I can't see LH (or anyone else with all senses intact) taking over AB in a share deal, which means all AB's debt would be taken over automatically.
But i can easily see LH taking over AB's assets - slots, maybe planes, etc. This is what is actually happening and effective right now in Vienna with the local subsidiary of AB, FlyNiki.
 
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Re: Rumour: LH to acquire AB, 45% of AZ

Wed Oct 19, 2016 7:10 pm

Just a couple of things: unions have been wiped out in Italy. Italy has changed from one of the strictest labour markets in Italy to one of the most flexible. The vast majority of AZ cabin crew are seasonal/on call with no benefits. The current government is very pro business and they go out of their way to help out the ME 3. No other EU country allows fifth freedom flights to EK. IG has been sold to IG on a silver platter. It may not be the hen laying a golden eggs but it can serve as a great Trojan horse to the secondary EU markets. Keep in mind flight to/from Sardinia received legal subsidies from the government so planes could fly empty and still make money. The problem with IG was their huge workforce and benefits, both of which have been decimated.

EY will still maintain its 49% share in AZ and even if they wanted they couldn't sell at this stage because of a no-sell clause wanted specifically by EY by virtue of which no major shareholder can sell their stake for at five years I believe. Anyways EY is happy with the president which they handpicked from Ferrari and they handpicked the new CEO as well. Sure there's been some glitches and set back but the airline is back in the black.
 
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Re: Rumour: LH to acquire AB, 45% of AZ

Wed Oct 19, 2016 8:58 pm

VCEflyboy wrote:
No other EU country allows fifth freedom flights to EK.

AFAIK, Germany does allow fifth freedom flights for UAE carriers.
VCEflyboy wrote:
EY will still maintain its 49% share in AZ and even if they wanted they couldn't sell at this stage because of a no-sell clause wanted specifically by EY by virtue of which no major shareholder can sell their stake for at five years I believe.

Wouldn't that mean that LH cannot buy any shares?
 
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Re: Rumour: LH to acquire AB, 45% of AZ

Wed Oct 19, 2016 9:49 pm

pompos wrote:
VCEflyboy wrote:
No other EU country allows fifth freedom flights to EK.

AFAIK, Germany does allow fifth freedom flights for UAE carriers.



EK operated a HAM-JFK 5th freedom tag-on for a year or two but it proved unprofitable and was dropped.
 
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Re: Rumour: LH to acquire AB, 45% of AZ

Thu Oct 20, 2016 2:47 am

pompos wrote:
VCEflyboy wrote:
No other EU country allows fifth freedom flights to EK.

AFAIK, Germany does allow fifth freedom flights for UAE carriers.

Yes but that was back then EK was not AirA380 yet.
If they were to start any other 5th freedom route they would have to re-apply.

VCEflyboy wrote:
EY will still maintain its 49% share in AZ and even if they wanted they couldn't sell at this stage because of a no-sell clause wanted specifically by EY by virtue of which no major shareholder can sell their stake for at five years I believe.

Wouldn't that mean that LH cannot buy any shares?


Well conceivibly if the transaction has EY blessings and current shareholders can make a bit of money all parties can agree to withdraw the non-sale clause.
 
oldannyboy
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Re: Rumour: LH to acquire AB, 45% of AZ

Fri Oct 21, 2016 7:41 am

[color=#FF00FF][color=#FF0080]The problem with IG was their huge workforce and benefits, both of which have been decimated[/color]. [/color]


..Sorry to sound evil [not!], but I was very, very happy to see their incredible benefits (and their sour, unfriendly attitude) be thrown out of the window. Some of their long-serving Stewardesses were making more than normal airline captains! I really hope the new management gives them as hard a time as can possibly be.
 
VCy
Posts: 431
Joined: Tue Dec 04, 2012 8:01 am

Re: Rumour: LH to acquire AB, 45% of AZ

Fri Oct 21, 2016 8:15 am

VCEflyboy wrote:
Just a couple of things: unions have been wiped out in Italy. Italy has changed from one of the strictest labour markets in Italy to one of the most flexible. The vast majority of AZ cabin crew are seasonal/on call with no benefits. The current government is very pro business and they go out of their way to help out the ME 3. No other EU country allows fifth freedom flights to EK. IG has been sold to IG on a silver platter. It may not be the hen laying a golden eggs but it can serve as a great Trojan horse to the secondary EU markets. Keep in mind flight to/from Sardinia received legal subsidies from the government so planes could fly empty and still make money. The problem with IG was their huge workforce and benefits, both of which have been decimated.

EY will still maintain its 49% share in AZ and even if they wanted they couldn't sell at this stage because of a no-sell clause wanted specifically by EY by virtue of which no major shareholder can sell their stake for at five years I believe. Anyways EY is happy with the president which they handpicked from Ferrari and they handpicked the new CEO as well. Sure there's been some glitches and set back but the airline is back in the black.


Cyprus also allows fifth freedom flights to ME3. EK already does MLA and ATH from LCA and i believe last year QR got approved for 5th Freedom rights too.
 
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LAXintl
Posts: 24627
Joined: Wed May 24, 2000 12:12 pm

Re: Rumour: LH to acquire AB, 45% of AZ

Wed Nov 02, 2016 8:31 pm

At today's earnings call the LH CEO was asked about AZ. His answer:

"I have a house in Italy, that is much investment as we need right now in Italy'

=
From the desert to the sea, to all of Southern California
 
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NYCRuss
Posts: 195
Joined: Thu Jul 21, 2016 9:54 pm

Re: Rumour: LH to acquire AB, 45% of AZ

Wed Nov 02, 2016 8:34 pm

LAXintl wrote:
At today's earnings call the LH CEO was asked about AZ. His answer:

"I have a house in Italy, that is much investment as we need right now in Italy'

=

Did he say anything about AB?

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