THY shies from LOT acquisition, covets SE Asia/Australia expansion

Turkish Airlines was asked by the Polish government to make a major investment in LOT Polish Airlines, a source close to the THY board told ATWOnline, but the carrier rejected the offer because it is focused on its own expansion plans.

Last week, THY responded to press speculation that it was pursuing the Polish airline, saying, "There is no board of directors' decision taken regarding the acquisition. . .However, our [company] is open to consider any possible opportunities as part of our growth strategy and [we have] no specific motivation for this matter."

The Polish state currently holds 68% of LOT, the Towarzystwo Finansowe Silesia investment group has 25.1% and airline employees hold 6.9%. The treasury said in January that several bidders were interested in a potential investment but nothing concrete has materialized (ATWOnline, Jan. 21). Lufthansa, likely LOT's preferred partner, has no plans to add to its stable of carriers.

Meanwhile, THY is looking to expand its presence at Bangkok Suvarnabhumi and to partner with fellow Star Alliance member Thai Airways in an effort to penetrate more of Southeast Asia and Australia. THY GM-Thailand, Vietnam and Cambodia Adnan Aykac told the Bangkok Post that the airline is negotiating a codeshare agreement with Thai that would give it access to Australia and New Zealand, where TG serves a combined five destinations.

"While we are hopeful we can strike a deal with Thai later this year, we do have alternatives to support our growth in this region," he told the paper. THY reportedly plans to serve Ho Chi Minh City via BKK from the fall and also is considering flying to Kuala Lumpur and Manila.