jp1 Posted July 28, 2003 Report Share Posted July 28, 2003 In their Sunday edition the Swiss newspaper 'LE MATIN' reported that Lufthansa and Swiss will swap their shares. According to the a.m. newspaper a high ranking Swiss official close to the CEO Mr. Andre Dose informed the Swiss daily about the deal. In a first step Lufthansa takes over some 30% of Swiss shares in exchange for the equivalent value in LH shares to Swiss. This includes an option that Lufthansa ?at a later stage- can take over the majority of Swiss shares (above 50%). At the same time Lufthansa will help Swiss to obtain a 500 Million Swiss Franc Credit from ?Deutsche Bank? in order to survive. The Swiss long-haul aircrafts can still operate but will be managed by Lufthansa ex Frankfurt, all other operation remain unchanged. Neither Swiss, Lufthansa nor ?Deutsche Bank? did want to comment on this deal, which could be sealed either on August 6th, or 13th. Link to comment Share on other sites More sharing options...
Torneyboy Posted July 28, 2003 Report Share Posted July 28, 2003 Says jp1: In their Sunday edition the Swiss newspaper 'LE MATIN' reported that Lufthansa and Swiss will swap their shares. According to the a.m. newspaper a high ranking Swiss official close to the CEO Mr. Andre Dose informed the Swiss daily about the deal. In a first step Lufthansa takes over some 30% of Swiss shares in exchange for the equivalent value in LH shares to Swiss. This includes an option that Lufthansa ?at a later stage- can take over the majority of Swiss shares (above 50%). At the same time Lufthansa will help Swiss to obtain a 500 Million Swiss Franc Credit from ?Deutsche Bank? in order to survive. The Swiss long-haul aircrafts can still operate but will be managed by Lufthansa ex Frankfurt, all other operation remain unchanged. Neither Swiss, Lufthansa nor ?Deutsche Bank? did want to comment on this deal, which could be sealed either on August 6th, or 13th. Good deal for Lufthansa. Airline good as well hope lead to deals for customers? Link to comment Share on other sites More sharing options...
jp1 Posted July 28, 2003 Author Report Share Posted July 28, 2003 Good deal for Lufthansa. if the deal is approved it's certainly a good deal having unlimited access to this very wealthy Swiss market. Airline good as well hope lead to deals for customers? of course, better deals for everybody but may be, just may be a bit more expensive in future. Link to comment Share on other sites More sharing options...
Torneyboy Posted July 28, 2003 Report Share Posted July 28, 2003 Says jp1: Good deal for Lufthansa. if the deal is approved it's certainly a good deal having unlimited access to this very wealthy Swiss market. Airline good as well hope lead to deals for customers? of course, better deals for everybody but may be, just may be a bit more expensive in future. I think we will see more of this across the board as belt tightening comes into being. Better deals for pax and shareholders ..win win If admin up to scratch. Link to comment Share on other sites More sharing options...
think_too_mut Posted July 28, 2003 Report Share Posted July 28, 2003 >I think we will see more of this across the board as belt tightening comes into being. I think this is only a beginning. The airline industry is one of few that has not gone through a major consolidation. Europe and it's fragmented market (in terms of airlines) is where it ought to start big time. Travelling public, beware. It may not work in our interest. Link to comment Share on other sites More sharing options...
Mentors Posted August 4, 2003 Report Share Posted August 4, 2003 I live just a few km away from the Zurich Airport and Swiss Base. Swissair/Swiss was/is for years under an incredible mismanagement and corruption. Some friends of mine lost their jobs in the meantime. Also there are dozens (!) of Thai and Philipina ladies working for the food carrier. Most of them will lost their jobs on the end of this month. This comedy-tragedy is a shame for my home country. Lufthansa will buy a cat in the bag. Link to comment Share on other sites More sharing options...
jp1 Posted August 4, 2003 Author Report Share Posted August 4, 2003 Lufthansa will buy a cat in the bag. I see this from a different angle. The advantage is that Swiss will mainly be curtailed to Intra European routes plus one or two lucrative intercont. routes. The Swiss market is the main asset. To be in control of this market is worth the money. Switzerland isn't a member state of the EU, that means the European 'no frills' carriers wont have an easy entry into the country. Link to comment Share on other sites More sharing options...
think_too_mut Posted August 4, 2003 Report Share Posted August 4, 2003 >Switzerland isn't a member state of the EU, that means the European 'no frills' carriers wont have an easy entry into the country. jp1, You obviously understand the airline market. Your post kind of confirms - the travelling public won't have much joy after the acquisition. Without no-frills carriers, anyone can do what they want. Until competition puts them in the line. Link to comment Share on other sites More sharing options...
jp1 Posted August 4, 2003 Author Report Share Posted August 4, 2003 You obviously understand the airline market. lol Your post kind of confirms - the travelling public won't have much joy after the acquisition. not necessarily, the attempt by so called airlines like 'Ryan Air' and several others to 'kill' the established carriers will get a set back. Without no-frills carriers, anyone can do what they want. Until competition puts them in the line. Only theoretically. If somebody from a small country like Switzerland wants to fly for a few cents, so to speak, he can still travel accross the border to Italy, France or Germany and take one of the 'Cheap Charlie' Airlines. Link to comment Share on other sites More sharing options...
Torneyboy Posted August 4, 2003 Report Share Posted August 4, 2003 Says jp1: You obviously understand the airline market. lol Your post kind of confirms - the travelling public won't have much joy after the acquisition. not necessarily, the attempt by so called airlines like 'Ryan Air' and several others to 'kill' the established carriers will get a set back. Without no-frills carriers, anyone can do what they want. Until competition puts them in the line. Only theoretically. If somebody from a small country like Switzerland wants to fly for a few cents, so to speak, he can still travel accross the border to Italy, France or Germany and take one of the 'Cheap Charlie' Airlines. Correct...but what about the poor agents that get caught in the middle of all the maze. We earn 5% of the ell cheapo ticket ..cant cover costs on those sort of sales. Oh well we can wait till they fold i guess. These fly cheap charlie airlines still have to fill the aircraft and pay for fuel/crew..etc how long do they last without an up trend in fares...not long Link to comment Share on other sites More sharing options...
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