Lufthansa eyeing more acquisitions

Weber says time is right to buy

Lufthansa is looking for more acquisitions as the economic downturn hits the airline industry.

Juergen Weber, chairman of the German carrier's supervisory board, said the airline wanted to be ahead of its competitors when the recession ends.

He told the German newspaper Frankfurter Allgemeine Zeitung today (January 29) that: "We will concentrate on Europe for now." Reuters reported.

A likely target is SAS, a fellow member of the Star Alliance and an airline with which Lufthansa has already held talks.

Mr Weber told the newspaper: "If the conditions are right, SAS will become interesting for us."

Another possible target is Iberia whose merger talks with BA are said to be foundering.

Lufthansa, which is already the biggest airline in Europe in terms of passengers carried, has recently acquired Austrian Airlines and a 45% stake in SN Brussels Airlines.

This last acquisition is the subject of an anti-monopoly investigation by the EC.

Speaking of the drop in demand caused by the world economic crisis, Mr Weber said he could not rule out a decline in passenger numbers as high as 5%, more than the 2.7% by which they fell after the terrorist attacks on 9/11.

But he added: "That would be a horror scenario."  

www.lufthansa.com