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Lufthansa plans SAS acquisition: report

The Local · 23 Dec 2010, 11:51

Published: 23 Dec 2010 11:51 GMT+01:00

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Talks are pending with the governments of Sweden, Denmark and Norway, which together own half of the airline's stock, Bloomberg reports, citing a person with inside knowledge of the discussions.

Lufthansa would strengthen its central European dominance and cut flight times on some transatlantic routes, according to the source, although the plans have not been made public.

Lufthansa spokesperson Andreas Bartels declined to comments on the Bloomberg report.

Beleaguered Scandinavian airline SAS posted deep losses for the third quarter, with results weighed down by legal fees and a €70 million fine (629.42 million kronor, $96.38 million) for being part of a global cargo cartel.

The airline, which has been hard-hit by the rise of low-cost airline Norwegian and by plunging passenger traffic numbers in the wake of the global economic crisis, launched a major restructuring plan, Core SAS, last year, aimed at saving nearly 8 billion kronor ($1.17 billion), entailing more than 5,000 layoffs.

Story continues below…

The renewed speculation surrounding Lufthansa interest in SAS, had a positive impact on the firm's stock on Thursday morning, with a climb of 10 percent by 10.30am local time.

The Local (news@thelocal.se)

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Your comments about this article

12:56 December 23, 2010 by johnny1939
Comment removed by The Local for breach of our terms.
13:07 December 23, 2010 by Beavis
First thing they will have to do is sack the current sernior management. (an fire not lay off) Then start offering competitive fares and move them on from the 1980s
13:09 December 23, 2010 by Tennin
I had a very very negative experience with Lufthansa some years ago. I made a complaint and the only thing they offered me was a 10% discount for my next booking with them. Needless to say I avoid buying my airtravel tickets from Lufthansa like it's the plague.
13:34 December 23, 2010 by BeHiNdScEnE
Just don't know what remain (MADE IN SWEDEN)? Everything we grew up with as national brand or industry is sold to FOREIGNERS !!!
13:49 December 23, 2010 by PonceDeLeon
Why can't Swedish companies maintain competative in todays market? Rhetorical? Is it possible that they are unwilling to change the way they do business, in a global market. Sooo tired of hearing excuses beginning with, " In Sweden, ..." Don't blame the buyer, blame the seller!! Be glad your tax Kronors won't be subsidising another loser.
16:02 December 23, 2010 by fikatid
I'm glad Lufthansa take over SAS. Free food and drinks finally! If it's not because of the direct connection, I would definitely not fly SAS.
19:46 December 23, 2010 by mkvgtired

"still don't trust these people and I am not even jewish."

You are comparing the acquisition of SAS by Lufthansa to the Holocaust? Ive had very good experiences with Lufthansa, as well as other German companies. My best friend is Jewish and lost several family members in the Holocaust and he still uses German products (including his car). Stop being so cynical. Would you refuse to get an MRI if you walked into the room and saw a Siemens MRI machine?
20:04 December 23, 2010 by Sebastian_R
While I don't think that Lufthansa is the best airline ever, I think it is by far not the worst either. And I think that a stronger route network would look good both for SAS and Lufthansa.

Guys, look how SWISS (also taken over by LH) is doing: they remain an independent airline, they have their own way of doing things but they are part of a big network which makes connecting very nice.

On the story that there are no big Swedish companies - that's BS: H&M, Ikea and Saab (aircraft) are just a few random examples...
21:35 December 23, 2010 by cogito
Expect to be shuttled to Frankfurt before you can even begin your flight to your real destination.
16:15 December 24, 2010 by sendia
@ Sebastian_R

"The groups of companies that form IKEA are all controlled by INGKA Holding B.V., a Dutch corporation"

Im not sure its Swedish anymore.
15:52 December 25, 2010 by Renfeh Hguh

"Expect to be shuttled to Frankfurt before you can even begin your flight to your real destination. "

and this differs from going via Copenhagen how?
14:45 December 26, 2010 by dobermann
Just don't know what remain (MADE IN SWEDEN)? Everything we grew up with as national brand or industry is sold to FOREIGNERS !!!

And most of those foreigners used to be a cheap labour for these swedish companies not so long ago..A Stick has two ends , isn't it?
15:55 December 27, 2010 by tapaninyc
I doubt.

At this time it makes little economic sense for Lufthansa to pay for SAS. Considering the por service and reputation of SAS, it is easy for Lufthansa to outcompete SAS simply by adding flights to scandinavian countries.

Since the two companies are code sharing with United, I have had United Airlines flights where a part of the trip has been on SAS and the 2nd half on Lufthansa. My experiences are such, that I now do my best to make sure, I will at no time need to board a SAS flight.

In order to do this, I have actually switched from United to American. This way I will most of the time fly British Airways all the way, or in the worst case fly via Helsinki by Finnair. Either way, it beats having to deal with the annoyance of having to put up with SAS staff and their lack of service.
14:24 December 28, 2010 by manimean
@ Sendia

""The groups of companies that form IKEA are all controlled by INGKA Holding B.V., a Dutch corporation"

As a Dutch citizen you are right but that is most of the times for tax reasons.

The owner of this holding is Ingvar Kamprad. So you can still be proud
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