Lufthansa CEO says TAP remains “interesting option”
The German company joins the other main pretenders -- Air France-KLM and IAG -- in reaffirming their interest after the government took another step in the TAP privatisation process this month.
Lufthansa remains interested in buying a stake in TAP after the government gave the green light for the privatisation of up to 49.9% of the Portuguese airline, the German group’s CEO said on Thursday. “TAP continues to be an interesting option for us”, said Carsten Spohr, quoted by Reuters.
In the conference call with analysts that followed, Spohr recalled that there have been advances and setbacks in this process in the past. “I think I rightly said last quarter that this would take longer than people think”, he pointed out, emphasising that “the latest developments have confirmed that”.
The CEO also emphasised that “it’s no surprise that all the major European players — whether they’re based in London, Paris or Frankfurt — are paying attention to this issue”.
“But right now we’re happy to concentrate on ITA [the Italian company in which Lufthansa acquired a 41% stake last year], so there’s no rush on our part. However, we will talk about mergers and acquisitions when things happen and not just when we foresee them”, he concluded.
Earlier this month, Luís Montenegro’s government went ahead with the process of privatising TAP with up to 49.9% of the capital. The decision “incorporates opening up to 44.9% of the capital to one or more investors and 5% to employees”, revealed the Prime Minister, who also guaranteed that the process would safeguard the Lisbon hub and that, if the government’s objectives are not met, the process could be suspended without any compensation.
On July 10, Air France-KLM confirmed its interest in participating in the privatisation, while IAG said it would re-evaluate the terms of the operation after the government approved the decree-law giving the go-ahead for the sale of 49.9% of the Portuguese airline.
This Thursday, Air France-KLM reaffirmed its interest in acquiring a stake in TAP, assured that it is still “studying” this opportunity, but explained that it will always be a “business decision” — and if the Franco-Dutch company finds it “too risky” it won’t even enter the race.
“Very difficult to reach an agreement” to buy Air Europa
Lufthansa is in negotiations with Spanish airline Air Europa to buy a stake.
These negotiations are proving difficult, however, said Carsten Spohr on Thursday, officially confirming for the first time the talks on a possible entry into the market. “I can confirm that it is very difficult to reach an agreement”, he emphasised.
Air France-KLM announced on Thursday that it had abandoned negotiations with Globalia, the airline’s majority shareholder.
Operating profit up 27%
Lufthansa reported a 27% increase in operating profit for the second quarter, to 871 million euros, compared to the same period last year, beating analysts’ average forecast of 805 million euros.
“Although the second quarter was again marked by geopolitical crises and economic uncertainties, we confirm our positive outlook for the whole year”, said Carsten Spohr, quoted in a statement.
At a press conference, the manager added that there are still uncertainties about the future of demand, but that falling oil costs and efficiency efforts are helping to keep the outlook stable.
At 11.09am, Lufthansa shares were up 0.16% to 7.49 euros each.
