Lufthansa is not participating in any discussions with SAS Group beyond its regular meetings over route co-operation, indicating that there is no immediate prospect of the German carrier’s being part of an SAS restructuring.
SAS Group, which is struggling to become profitable, has been exploring options for its future structure.
Lufthansa has never openly disclosed its possible involvement and is declining to comment on the matter.
But a source familiar with the SAS discussions says Lufthansa, until recently, had been in “closer” talks with the Scandinavian company.
He says, however, that there are “no active talks anymore” between the two companies, beyond their day-to-day contact on joint-venture activity on routes between Scandinavia and Germany.
SAS’ financial performance, particularly given the current economic crisis, is a concern for the German carrier. SAS is still burdened by Spanish operation Spanair, after its failure to sell the company, and the group has yet to complete an extensive internal cost-cutting drive.
“It all comes back to profitability,” says the source.
Lufthansa is already heavily involved in other European consolidation opportunities, having committed to an investment in Brussels Airlines, formally expressed interest in Austrian, and is in the process of picking up a controlling share of the UK’s BMI.
Source: Air Transport Intelligence news
