Lufthansa targets European network

Lufthansa Chairman and CEO Wolfgang Mayrhuber told ATWOnline recently that acquisition of Austrian Airlines and Brussels Airlines is a "logical step" toward creating a pan-European network.

Speaking at Star Alliance's annual board meeting in Chicago, Mayrhuber said LH is targeting further consolidation. "From the LH management perspective, we can do more," he told this website. "What we have already done is no surprise."

He declined to say whether LH will bid for either SAS Group (ATWOnline, Nov. 13) or LOT Polish Airlines (ATWOnline, Dec. 15), but said the company's goal is to "create our own Star Alliance network" with a "modular" concept comprising the amalgamation of several airlines. He called it LH's "European answer" to the need for consolidation.

The company continues to have its sights set on Alitalia and Mayrhuber said he will not back down despite speculation that Air France KLM is leading the race to partner with Compagnia Aerea Italia (ATWOnline, Dec. 12). "Our logo is the crane, not a chicken," he said. Lufthansa board member Holger Hatty told Il Messaggero yesterday that LH would offer AZ "more than" €500 million ($686 million) in synergies and that a "multihub and multibrand" network would feature a Rome Fiumicino hub "focus[ed] on tourism" and a Milan Malpensa hub "focus[ed] on business."

Lufthansa decided against a bid for Iberia last year, when it displayed considerable caution as consolidation started to unfold (ATWOnline, Dec. 14, 2007).

The short-term outlook remains gloomy, however, and Mayrhuber said LH has planned no growth next year. "You should only produce what you can sell," he said.