Lufthansa CEO Asserts Premature Discussion on Potential Takeover of Portugal's TAP

Lufthansa CEO: Portugal's TAP Takeover Talks Premature, European Airline Consolidation Continues. Stay Updated on Aviation Industry News.

Jun 4, 2023 - 13:19
Jun 4, 2023 - 13:20
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Lufthansa CEO Asserts Premature Discussion on Potential Takeover of Portugal's TAP
Lufthansa CEO Asserts Premature Discussion on Potential Takeover

In a recent statement, Lufthansa's Chief Executive, Carsten Spohr, indicated that it is premature to engage in discussions regarding Lufthansa's potential interest in acquiring Portugal's national airline, TAP. The Portuguese government is currently deliberating the privatization process, and until a decision is reached, Lufthansa remains cautious about expressing any definitive takeover plans.

The Portuguese government has expressed its intention to retain a strategic stake in TAP, signaling that not all of its capital will be offered during the upcoming privatization. Joao Nuno Mendes, the Secretary of State for Finance in Portugal, emphasized the importance of maintaining a level of state control in the airline.

Lufthansa is not the only major global carrier showing interest in TAP. Air France-KLM and IAG, the parent company of British Airways, have also expressed their desire to explore potential acquisition opportunities. The aviation industry in Europe has been witnessing significant consolidation, and the acquisition of TAP could serve as a strategic move for any of these carriers to strengthen their market presence.

Carsten Spohr also shed light on Lufthansa's recent agreement to acquire a 41% stake in ITA Airways, an Italian carrier. This move is part of the ongoing consolidation efforts within the European aviation sector. However, the finalization of the deal is subject to approval from the European Commission. Once approved, ITA Airways will become a part of Lufthansa's global sales contracts, contributing to the airline's revenue growth.

Addressing operational matters, Spohr mentioned that several aircraft across the Lufthansa group remain grounded due to ongoing supply chain challenges. These issues have impacted the airline's operations, and efforts are underway to mitigate the disruptions and restore normalcy.

Moreover, Spohr provided an update on the highly anticipated Boeing 777X deliveries. While Boeing initially estimated delivery to be in late 2024 or early 2025, Spohr clarified that the expected timeline leans towards early 2025. The Boeing 777X is set to play a crucial role in Lufthansa's fleet expansion plans once it becomes available.

As the Portuguese government continues its deliberations on TAP's privatization process, industry observers eagerly await further developments to see how Lufthansa and other interested carriers will navigate the potential acquisition. The European aviation landscape is evolving, and strategic moves in the sector will undoubtedly shape the industry's future trajectory.

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