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Lufthansa says not interested in taking over Alitalia

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AFP Frankfurt Am Main
Last Updated : Apr 27 2017 | 4:57 PM IST
German airline group Lufthansa said today it is not interested in snapping up troubled Italian carrier Alitalia, as Rome hunts for a buyer after workers rejected a bailout plan.
"We are clearly not there to buy Alitalia," finance chief Ulrik Svensson said during a teleconference with analysts on Lufthansa's first-quarter financial results.
Italian government ministers said Wednesday they would not oppose a takeover bid by the German behemoth, as they announced that Alitalia would be sold "to the highest bidder".
Lufthansa, which already owns a stable of carriers including Austrian Airlines, Swiss, Brussels Airlines, and Eurowings, on Thursday reported a net loss of 68 million euros between January and March -- a worse performance than the same period last year.
The result comes after a record year for Frankfurt-based Lufthansa, in which it booked profits of 1.75 billion euros (USD 1.90 billion) despite fierce competition from low-cost competitors and Gulf airlines such as Etihad.
Loss-making Alitalia's future is up in the air after its workforce rejected a restructuring plan which management had presented as the only alternative to bankruptcy.

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Etihad, which owns a 49 percent stake in Alitalia, and other shareholders had made staff acceptance of the plan a precondition for their participation in a two-billion-euro recapitalisation plan involving a combination of loans and new shareholder financing.
But despite earlier proposals being watered down in negotiations with unions, over two thirds of staff voted to reject them in a ballot on Monday, in which more than 90 percent of employees took part.
The company's board on Tuesday asked the government to appoint administrators to find a purchaser or organise the winding up of the company.
Etihad also holds a stake in struggling German airline Air Berlin, which has delayed the release of its 2016 annual results -- widely expected to show the firm in a poor light -- until Friday.
Lufthansa has been mooted as a potential buyer for Air Berlin in the German press if the Gulf carrier decides to review its strategy in Europe.

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First Published: Apr 27 2017 | 4:57 PM IST

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