Paul Lewis/SINGAPOR Kevin O'Toole/FRANKFURT
Singapore Airlines (SIA) has joined the growing list of international suitors lining up to take a stake in Thai Airways and could be joined in its bid by partner Lufthansa, which says that it is prepared to fend off rival bids if they threaten Thai's position in the Star Alliance.
SIA has acknowledged that it is interested in the Thai Government's planned sale of a 23% stake in the national carrier. British Airways and partner Qantas are also angling for a share, a move which could effectively end the Thai carrier's participation in the Lufthansa-led Star Alliance.
Lufthansa chairman Jürgen Weber says that, while his group remains reluctant to buy a small minority stake in an airline, it would do so "if necessary as a defensive measure", adding that the loss of a Star member would qualify as a reason for action.
Weber says that any such moves would be taken together with its new strategic partner, SIA, pointing to the recent decision to make a joint bid in the privatisation of South African Airways (SAA) as a "case in point". SIA and SAA are both on the wishlist for Star Alliance membership.
The Thai Government is under pressure from the International Monetary Fund to reduce its 93% stake in Thai as part of a package of reforms in return for a $17.2 billion economic bail out. The Government had planned to sell off as much as 30% of the carrier six years ago, but privatisation has been hamstrung by infighting between the military and the finance and transportation ministries.
Thai is heavily indebted and widely acknowledged to be in need of reform if it is to operate effectively with the other members of the Star group. Any SIA/Lufthansa investment in Thai will almost certainly entail demands for a role in managing the carrier.
A British Airways/Qantas link with Thai could cloud the UK carrier's alliance talks with Cathay Pacific. The Hong Kong carrier is also in talks with prospective BA partner Japan Airlines, but, as a precondition, is being asked to reduce frequencies to Japan and restructure its frequent flier plan.
Source: Flight International
