Lufthansa buys the remaining 55% of Brussels Airlines

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sn26567
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Lufthansa buys the remaining 55% of Brussels Airlines

Post by sn26567 » 13 Apr 2016, 10:36

Lufthansa, which owns 45% of the shares of Brussels Airlines, will decide on 27 April whether to take over the remaining 55%, writes German newspaper Süddeutsche Zeitung this morning (13 April).

According to the newspaper (a most respected one in Germany), Lufthansa is likely to go ahead. It has an option to buy the shares, but never used that right. However, it appears now that Lufthansa is convinced that the time has come to take Brussels Airlines under full control.

Officially, according to the agreement with SN Airholding (owner of 55% of Brussels Airlines), Lufthansa must give an answer during the second quarter of 2016.
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Re: Lufthansa to decide on 27 April whether to take over all of Brussels Airlines

Post by sn26567 » 13 Apr 2016, 11:24

consoleflood wrote:https://www.monarchie.be/nl/agenda/audience-3

Maybe somebody already knows...
Some people here were sceptical about this meeting between Lufthansa CEO Carsten Spohr and King Philip. I was the first to ask whether something was brewing:

https://www.aviation24.be/forums/viewtopic ... 46#p332586
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Re: Lufthansa to decide on 27 April whether to take over all of Brussels Airlines

Post by Inquirer » 13 Apr 2016, 11:33

If confirmed indeed, this is a HUGE vote of confidence in the company and the product Brussels Airlines stands for.

I would have placed all of my bets on them calling the option right up to the terror attacks (even up to a week later, as these were exceptional events), but all the self-inflicted damage that comes thereafter (police actions, air controler's strikes, what else to come) can hardly be called one off events any more, so Belgium really doesn't do itself a favuor here, if it wants to present itself as investor-friendly.

Shows once again a multinational looks through all the exceptionals and straight to the fundamentals, but still: they must be pretty convinced about the business case to take them into consolidation at the darkest of times. Of course, those aimed also create big opportunities, so most interesting times ahead, for sure.

De Tijd talks about a cash injection of some €250M for the holding (to buy out the remaining shareholders most likely).

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Re: Lufthansa to decide on 27 April whether to take over all of Brussels Airlines

Post by Yuqu12 » 13 Apr 2016, 12:27

The fact that the CEO went to the King does mean something. The CEO doesn't go to the King to say that they aren't buying the rest of the shares, I suppose...

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Re: Lufthansa to decide on 27 April whether to take over all of Brussels Airlines

Post by Poiu » 13 Apr 2016, 12:33

Inquirer wrote:If confirmed indeed, this is a HUGE vote of confidence in the company and the product Brussels Airlines stands for.
I think it s an indication about the financial problems SN is facing, De Tijd hints at this by the way in their article. It is no coincidence that suddenly a decision is taken head over heals. If LH wants BRU and SN's African network they will need to inject some money urgently, otherwise it could be game over.
As for the product, I still think it will be SN Africa, but Eurowings for the European network.

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Re: Lufthansa to decide on 27 April whether to take over all of Brussels Airlines

Post by Crosswind » 13 Apr 2016, 13:04

There is no urgency. I say again : there is no urgency concerning the financial situation of Brussels Airlines. What is against true is that the take-over may leads to a positive trend, and this seems urgent in regards to the lasts events...

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Re: Lufthansa to decide on 27 April whether to take over all of Brussels Airlines

Post by b720 » 13 Apr 2016, 13:33

Their financial situation may still be under control; however if the current situation does not change, I am not sure how it will reflect into the finances of SN. All involved must find a solution that takes BRU from being a military zone into a commercial civil airport. No one wants to fly into, out of, or through an army barrack!
I don't really see the justification for the customs officials at arrivals carrying automatic weapons! Nor FED Police at the gate upon arrival of intra schengen flights. Both cases witnessed last Sunday. To remain on topic, Belgian market might eventually start flying with SN despite of all the obstacles and 3 hour in advance advice, strikes, closure of the roads leading to the airport etc.. but people from outside Belgium will avoid BRU and environ for a very long time. This will have a very negative impact on the finances and survival of SN.

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Re: Lufthansa to decide on 27 April whether to take over all of Brussels Airlines

Post by Crosswind » 13 Apr 2016, 13:37

b720, I do fully agree. It's time to bring operations back to normal. No more A201 trafic jam, clear info on how to get there, to park his/her car, to drop off at the airport. Focus on making the check-in ops more efficient, and last but not least cancel this stupid agreement for a while.

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Re: Lufthansa to decide on 27 April whether to take over all of Brussels Airlines

Post by Inquirer » 13 Apr 2016, 16:50

Several German press sources now confirm Lufthansa will call the option to integrate B.air in full at the end of the month. They also report there is no direct relation to the financial consequences of the terror attacks on BRU, but rather it's the result of a more aggressive acquisition strategy from Lufthansa, evidenced by the fact they are reportedly also considering buying (part) of SAS at the same time!

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Re: Lufthansa to decide on 27 April whether to take over all of Brussels Airlines

Post by Poiu » 13 Apr 2016, 19:29

Inquirer wrote: they are reportedly also considering buying (part) of SAS at the same time!
If I am not mistaken there was already participation/ joint venture in the past, which ended in tears about 3 years ago isn't it?

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Re: Lufthansa to decide on 27 April whether to take over all of Brussels Airlines

Post by Inquirer » 13 Apr 2016, 21:29

Are you not confusing with the codeshare of SAS and Lufthansa on routes between Scandinavia and Germany, a codeshare which ended at around the time you mention? I don't think Lufthansa has ever owned (part of) SAS?

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Re: Lufthansa to decide on 27 April whether to take over all of Brussels Airlines

Post by skumfiduse » 13 Apr 2016, 21:49

Inquirer wrote:Are you not confusing with the codeshare of SAS and Lufthansa on routes between Scandinavia and Germany, a codeshare which ended at around the time you mention? I don't think Lufthansa has ever owned (part of) SAS?
Correct: SAS and Lufthansa have been in a joint-venture up until 31 May 2013. This JV applied on Scandinavia-German routes. From then on, both carriers operated continued their cooperation on a codeshare basis.

Personal note in light of today's aviation landscape: the JV might have been cancelled to prepare for a Eurowings approach which has nothing to do with Lufthansa 'mainline' product...

In the past there have been many reports about Lufthansa buying (a stake) in SAS. It got one very very close to that but then there was the financial crisis, the bmi-fiasco followed by bad results at SAS and the critical meetings in 2012 to save the airline.

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Re: Lufthansa to decide on 27 April whether to take over all of Brussels Airlines

Post by sn26567 » 13 Apr 2016, 22:45

skumfiduse wrote:In the past there have been many reports about Lufthansa buying (a stake) in SAS. It got one very very close to that but then there was the financial crisis, the bmi-fiasco followed by bad results at SAS and the critical meetings in 2012 to save the airline.
And then also SAS and Lufthansa owned British Midland together for some time...
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Re: Lufthansa to decide on 27 April whether to take over all of Brussels Airlines

Post by domtom » 13 Apr 2016, 22:58

sn26567 wrote:
consoleflood wrote:https://www.monarchie.be/nl/agenda/audience-3

Maybe somebody already knows...
Some people here were sceptical about this meeting between Lufthansa CEO Carsten Spohr and King Philip. I was the first to ask whether something was brewing:

https://www.aviation24.be/forums/viewtopic ... 46#p332586
Why on earth would he deliver the news to the king?

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Re: Lufthansa to decide on 27 April whether to take over all of Brussels Airlines

Post by sn26567 » 13 Apr 2016, 23:06

domtom wrote:Why on earth would he deliver the news to the king?
As said before: a matter of courtesy to the head of state.
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Re: Lufthansa to decide on 27 April whether to take over all of Brussels Airlines

Post by Inquirer » 14 Apr 2016, 09:13

Another financial news source in Germany (handelsblatt) is reporting today "the deal is done", pending "final board approval, possibly already at the end of this month".
Currently taxation of the outstanding shares seems to be the underway.

http://www.handelsblatt.com/unternehmen ... 39924.html

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Re: Lufthansa to decide on 27 April whether to take over all of Brussels Airlines

Post by Yuqu12 » 14 Apr 2016, 09:22

What a joke is that article :D

Belgian people happy with it? No, not really. Certainly the crew of SN, they are really against it.

Aviation lovers? Perhaps. I don't know what other people think about it (depends perhaps whether they like Lufthansa or not, ...)

I'm certainly not happy with it, giving the fact that Lufthansa is'nt really clear what the direction of SN will be if they have all the shares. Will SN still call SN? What with the destinations? Is Lufthansa going to keep the African network of SN?

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Re: Lufthansa to decide on 27 April whether to take over all of Brussels Airlines

Post by Inquirer » 14 Apr 2016, 09:57

Just a question, yuqu12: what would make you happy, if I may ask?

You have one of the most solid airline groups in Europe reportedly willing to buy your employer in full and thus provide you personally with a pretty decent job security, right at a moment when 'certain events' have happened at your home airport which would be lethal to an estimated 9 out of 10 airlines.

Short term, I'd say this news should be a god's gift for you, unless you know of somebody else standing ready with a couple of suitcases of cash money to provide the needed finances and thus continuity.

If and when they do indeed decide to buy b.air, it will certainly be because it fits their wider strategic growth plans as they have had ample time to draw them up and look at how to best integrate you in them, so I'd expect them to be able to give you answers to most of the questions you have in the weeks/months after the announcement of their decision.

I doubt it though they'd be willing to pay a lot of money for your airlines in order to shrink it or close it down even; in fact, if that were to be their plan, the recent events just made that so much cheaper to execute then, as they'd just have to wait for it to be done naturally! The fact they will go ahead regardless, gives me an hint that shrinking is not on the table, quite on the contrary even.
Last edited by Inquirer on 14 Apr 2016, 09:58, edited 1 time in total.

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