Lufthansa reconfirms interest as it enters next stage of TAP part privatisation

The CEO of Lufthansa, Carsten Spohr, reiterated the company’s interest in purchasing a significant share of Portugal’s national carrier TAP Air Portugal yesterday.

“We have already expressed our interest through a non-binding proposal and we will move on to the next stage. We have been invited to submit a binding proposal and we are looking forward to the next phase and the next steps ahead,” said Carsten Spohr in response to a question from the online news source ECO.

Despite the ongoing crisis in the Middle East with crude oil prices at US$92 and kerosine prices at around US$1.60 per litre, the current jet fuel crisis has not put the dampers on Lufthansa’s plan to complete to buy the Portuguese airline.

“Our interest in TAP has not changed,” said the Lufthansa CEO, highlighting the strategic rationale of the operation. The manager noted that “markets in the Southern Hemisphere are gaining importance” for the group, which will face greater global competition when Persian Gulf airlines resume capacity operations, making the competitive situation in Southwest Asia more difficult.

“Regarding South America, we believe we would be in an ideal position with TAP. In terms of market share, we are the smallest of the European groups in South America, but with TAP we would be on par with the others. And the business in South America is very attractive, particularly in Brazil,” he emphasised.

Source: ECO: Credits: Lufthansa.