Lufthansa (LH) will most likely not buy the remaining 55% of Brussels Airlines (SN) this year, LH chairman and CEO Christoph Franz revealed.
Speaking at the lunch of the European Aviation Club in Brussels on Tuesday, Franz said: “Our strategic commitment [to SN] is clear, but we are not in a hurry to exercise our call option. We still have another two years to do so. At this point of time the priority is on our bottom line.” LH Group reported an adjusted operating margin of 3.4% for 2011, which it wants to increase .
In September 2008, LH bought 45% SN’s parent company, SN Airholding for €65 million via a capital increase . As part of the agreement, LH has an option of acquiring the remaining 55% from 2011. The option can be exercised during three weeks in April.
Franz also confirmed that “if necessary we will offload more loss-making airlines in our portfolio. We started to offload loss-making carriers last year, with the sale of bmi to IAG, we closed Lufthansa Italia and withdrew from Jade Cargo.”
The sale of bmi to International Consolidated Airlines Group (IAG) is under review by the European Commission, which is expected to announce March 30 if it will approve the deal or open a more in-debt Phase 2 investigation. LH and IAG have offered remedies to address anti-trust issues.
Franz declined to comment on the nature of the concessions and said LH will review the future of bmi in case the EC prohibits the deal. According to the Sunday Times, LH is considering shutting down bmi if the sale to IAG is held up by anti-trust authorities in Brussels.
Article Source : ATW Daily News
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