starflyergold

According to Bloomberg Transport Reporter Alex Webb Lufthansa is in merger talks with Turkish Airlines, citing Turkish media reports.

Lufthansa won't confirm or deny the story.

G_G

Please Tell me it's not true

RTW1

It's based on a statement PM Edogan has recently made on a joint management. It might be that LH is interested in buying a stake in TK if the Turkish state decides to privitase their share...

starflyergold

I find that hard to believe. I thought LH was on record saying that they had had it with buying airlines (their history has been a checkered one) and want to focus on getting their finances in order. Plus I assume there would be complications with EU/non-EU airline companies merging, unless they will somehow have a holding structure.

starflyergold

As a blogger points out, they already have some similarities

starflyergold

You are right, this Reuters report is a bit more informative. It would seem strange for Merkel to make such offer as LH is a private company.

GUWonder

I doubt this is anywhere close to both companies being in talks with each other to merge together or even to get into being subsidiaries of a joint-holding company of some sort. Getting Merkel and Erdogan on the same page for a block sale of shares for shares for companies in this sector makes sense to maximize shareholder flexibility and create the potential for some more integration but even that is not necessary for closer integration since ATI/JVs have been allowed so much already that the barrier to more such tie-ins is more ephemeral than anything.

blackmamba

Haha! This would make for an easy transition then. It's odd how all these airlines are consolidating especially when TK is doing just fine.

starflyergold

Alex has been in touch to clarify that he did not claim they are in "merger" talk but only relayed Turkish media reports.

As with all these stories about mergers in the aviation industry time will tell.

starflyergold

Apparently the talks are over with no result. German media report that LH fears the increased competition from TK citing the high TK frequencies from many German airports to IST and beyond.

http://www.airliners.de/lufthansa-un...ben-sich/30631

vivamuci

LH's fear to lose more passengers to TK due to the opening of the new airport in Istanbul sounds like LH's management suffers from loss of reality.

LH lost many loyal customers not only in its home market because they devalued Miles&More from 2003 onwards and are always a step behind competition when it comes to the products on board (save for their excellent First Class).

I am German and LH used to be my carrier of choice. Among my frequent flying friends in Germany the loyalty to Lufthansa has also gone down dramatically mainly for the two above stated reasons.

LH's CEO Christoph Franz recently complained in an interview that they only introduce a full flat C because the market forces them to do so. If he could he would most likely personally tear the seats out. Reminded me a bit of the "over entitled elites" speech of the new UA management.

Once TK retrains their incompetent customer service, reservations team and unfriendly ground staff, learns how to handle irops better and processes requests in a timely manner (or gets back to their customers at all), they will gain even more market share in Germany.

LH on the other hand will further rely on the high yield C and F pax at their two intercont bases FRA and MUC.
They will continue to deliver an average product at a superior price tag and blame the new airport in Istanbul
that the rest of the customers are buying tickets with their competitors.

Alternatively they can also blame EK, QR, or even the man on the moon.

TK will be the dominant carrier for flights from Germany to destinations east of Istanbul and to Africa. Unlike the ME carriers they don't need government approval for additional flights to Germany.

I am very surprised that LH is not interested in trying to make a cooperation work.

LH4116

Did LH themselves confirm that they've lost many customers after their M&M "enhancements"?

I suppose TK really have to do something about their poor customer service, if they too want to retain customers in the future. And also weren't there any talks about kicking out all other airlines from Ataturk and only keeping Turkish as the sole operator?

starflyergold

And they are back talking, this time about the LH long haul LCC WINGS:

http://www.lufthansagroup.com/en/pre...icle/3077.html


LH seem to be convinced that by cannibalising their own brand they'll have a future.

starflyergold

Or maybe not http://www.arabianbusiness.com/turki...ts-557369.html

warakorn

People should not forget that there is already a common low cost project running between LH and TK. Its called SunExpress!