Lufthansa shopping again

[FrugalFlyerv2.0]

Lufthansa left as sole bidder for Austrian Airlines
AP

November 14, 2008

Austria's privatization agency said yesterday it had chosen Deutsche Lufthansa AG for exclusive final negotiations on selling the state's 41.6-per-cent stake in Austrian Airlines. A statement by the agency, known by its Austrian acronym OeIAG, said it "will conduct final negotiations only with Lufthansa." Air France-KLM and S7 of Russia, the two other carriers that had expressed an interest "are no longer in the bidding process," OeIAG said. Among the conditions set by Lufthansa late last month were that the Austrian state assume up to €500-million ($780-million) of the Austrian company's debt. Austria decided in August to sell its share in the flagship carrier, which is steeped in debt. LHA (Frankfurt) rose 10 euro cents to €10.28.

 

[whatkindoffreshhell]

(I do not think the rest of this board knows how to spell foreign....)

Good move for both OS and LH. The Germans will instill efficiency and yield-management behind the Austrian nameplate and everyone will be a winner. Just look at Swiss Airlines.

The matchup I'd really love to see (well, other than LH/UA) would be LH/AZ. But that is not going to happen. The professional Italian folks recognize the value LH would bring to AZ. The silly Italian unions would clash on a daily basis with the efficient German managers.

So that is why the remnants of AZ (in whatever they are calling the new holding company, not the leftover shell company which will stick Italian taxpayers which billions of debt) will wind up under the AF-KL umbrella.

The Italians love a good and senseless strike and they are cheering this weekend's strike by the AF pilots.

You want competition? The real Thunderdome matchup would be BA/AA/IB vs. LH/UA/JJ.

 

[FrugalFlyerv2.0]

Good move for both OS and LH. The Germans will instill efficiency and yield-management behind the Austrian nameplate and everyone will be a winner. Just look at Swiss Airlines.

IMHO, from the 1990's OS has effectively marketed itself and the location of VIE as a good entry point for central and eastern Europe. Also I thought that membership in * alliance and the conveniece of LH hubs at FRA and MUC were good deals for OS. I haven't been following too much lately, but what happenned to them?

I guess SkyEurope (~15-20 flights/day at VIE and a dozen or so at BTS 35 miles away) and AirBerlin - Niki (also a good presence at VIE) have rocked their world?

I wonder though, if now this is such a good move for LH? LH has its own hub at MUC, LX has a hub at ZRH, and OS at VIE. MUC-VIE and MUC-ZRH is ~200 miles, VIE-ZRH ~375 miles. How many hubs can LH (LH group) have so close together before one starts to canabolize the other(s)?

 

[FrugalFlyerv2.0]

AF-KL complains

Bloomberg
December 12, 2008

Air France-KLM filed a complaint with the European Commission alleging conditions under which Deutsche Lufthansa AG emerged as the sole bidder for Austrian Airlines AG were unfair. The Austrian government's rules at the end of the bidding process weren't the same as those it initially imposed, Air France said yesterday. Air France called on the commission to determine whether €500-million ($824-million) in cancelled debt under the deal was a form of state aid.

 

[vielong]

wonderful! thanks for the info..

assurance vie​