United to partner up with offshore LCC?
02-27-2020, 05:20 PM
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United to partner up with offshore LCC?
Would this be a way for United to lower long haul costs ?
https://www.reuters.com/article/uk-t...-idUSKCN20K2F8
FRANKFURT (Reuters) - Lufthansa (LHAG.DE) and United Airlines (UAL.O) are considering taking over TAP-Air Portugal, a German newspaper reported on Wednesday.
Sueddeutsche Zeitung, citing unidentified corporate sources, said talks were not close to a conclusion and the process could take some time.
The three airlines, all members of the Star Alliance, declined to comment.
TAP, which was partly privatized in 2015, is 50%-owned by the Portuguese state. Private consortium Atlantic Gateway, led by Brazilian-U.S. airline mogul David Neeleman, has a 45% stake. TAP employees hold the remaining 5%.
Lufthansa earlier on Wednesday announced a cost savings programme, including a suspension of new recruitment, to counter the business impact of the coronavirus outbreak.
Reporting by Ilona Wissenbach in Frankfurt, Andrei Khalip in Lisbon, and Tracy Rucinski in Chicago; Writing by Tom Sims; Editing by Mark Potter
https://www.reuters.com/article/uk-t...-idUSKCN20K2F8
Lufthansa and United weigh takeover of Portugal's TAP: Sueddeutsche
FILE PHOTO: The first A330neo commercial passenger aircraft for TAP Air Portugal airline is seen at the Airbus delivery center in Colomiers near Toulouse, France, November 26, 2018. REUTERS/Regis DuvignauFRANKFURT (Reuters) - Lufthansa (LHAG.DE) and United Airlines (UAL.O) are considering taking over TAP-Air Portugal, a German newspaper reported on Wednesday.
Sueddeutsche Zeitung, citing unidentified corporate sources, said talks were not close to a conclusion and the process could take some time.
The three airlines, all members of the Star Alliance, declined to comment.
TAP, which was partly privatized in 2015, is 50%-owned by the Portuguese state. Private consortium Atlantic Gateway, led by Brazilian-U.S. airline mogul David Neeleman, has a 45% stake. TAP employees hold the remaining 5%.
Lufthansa earlier on Wednesday announced a cost savings programme, including a suspension of new recruitment, to counter the business impact of the coronavirus outbreak.
Reporting by Ilona Wissenbach in Frankfurt, Andrei Khalip in Lisbon, and Tracy Rucinski in Chicago; Writing by Tom Sims; Editing by Mark Potter
02-27-2020, 06:05 PM
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Maybe, maybe not.
It is, however, certainly a way to try to keep TAP in Star Alliance. Essentially the government of Portugal (majority owner) and Neelman (minority owner) have not been playing nicely together. It beats somebody else buying Neeleman's stake.
It's not that different than when LH bought 20% of JetBlue as a hedge for the Star Alliance in the NYC market. But as soon as CO joined the UA/LH A++ JV the need was vaporized and LH cashed out of JB.
It is, however, certainly a way to try to keep TAP in Star Alliance. Essentially the government of Portugal (majority owner) and Neelman (minority owner) have not been playing nicely together. It beats somebody else buying Neeleman's stake.
It's not that different than when LH bought 20% of JetBlue as a hedge for the Star Alliance in the NYC market. But as soon as CO joined the UA/LH A++ JV the need was vaporized and LH cashed out of JB.
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