GERMANY: LUFTHANSA BUYS SWISS INTERNATIONAL AIRLINES IN ONE OF EUROPE'S LARGEST AIRLINE MERGERS

Record ID: 648069

  • Title: GERMANY: LUFTHANSA BUYS SWISS INTERNATIONAL AIRLINES IN ONE OF EUROPE'S LARGEST AIRLINE MERGERS
  • Date: 24th March 2005
  • Summary: (EU) FRANKFURT, GERMANY (MARCH 23, 2005) (REUTERS) 1. ARRIVAL OF WOLFGANG MAYRHUBER, CHAIRMAN OF THE EXECUTIVE BOARD AND CEO OF DEUTSCHE LUFTHANSA, AT NEWS CONFERENCE 2. MAYRHUBER SITTING DOWN AT PODIUM 3. CAMERA OPERATOR 0.17 4. SC POSTER SHOWING A PICTURE OF AIRCRAFT WITH THE SWISS AND LUFTHANSA LOGOS AND PAN TO SHOW MAYRHUBER TALKING 0.26 5. CAMERA OPERATOR 6. MEDIA LISTENING 7. (SOUNDBITE) (German) WOLFGANG MAYRHUBER, CHAIRMAN OF THE EXECUTIVE BOARD AND CEO OF DEUTSCHE LUFTHANSA, SAYING: "Lufthansa has a strong financial base and this became even stronger last year. We have invested further in products and quality, with the result that the customer satisfaction of Lufthansa customers is higher than ever before. Our fitness programme is up and running. We have become leaner, fitter and the company has become more efficient. Lufthansa has grown and has thereby become more attractive." 8. NEWS CONFERENCE 9. PODIUM 10. MAYRHUBER SPEAKING 11. MAYRHUBER TALKING AT THE PODIUM 12. MEDIA PERSON TYPING 13. (SOUNDBITE) (German) MAYRHUBER, SAYING: "Now we can align ourselves with one another and can combine our strengths. There are many arguments in favour of this merger on both sides. The most powerful argument for me is the obvious advantage for customers. The customers of both businesses will profit, as will the customers of our Star Alliance partners. The network is growing, and together we can offer additional destinations." 14. MEDIA TAKING NOTES 15. MORE MEDIA TAKING NOTES 16. (SOUNDBITE) (German) MAYRHUBER, SAYING: "Ladies and gentlemen, in my opinion, Swiss and Lufthansa fit together ideally. We are two strong brands, which stand for quality, reliability and expertise. Both brands are positioned in the highest quality-segment and complement each other perfectly." 17. MAYRHUBER TALKING AT THE PODIUM 18. MEDIA TAKING PHOTOGRAPHS, WITH THE LUFTHANSA AND SWISS LOGOS IN THE BACKGROUND 19. MEDIA LISTENING 20. VARIOUS OF MEDIA CONFERENCE 2.55 (EU) FRANKFURT, GERMANY (FILE) (REUTERS) 21. SLV STATIONARY LUFTHANSA AIRCRAFT, WITH AIRPORT SIGN IN BACKGROUND 22. VARIOUS OF LUFTHANSA AIRCRAFT 23. LUFTHANSA AIRCRAFT LANDING 3.22 (EU FRANKFURT, GERMANY (FILE) (REUTERS) 24. SLV SWISS AIRCRAFT ON RUNWAY 3.29 25. SLV LUFTHANSA AIRCRAFT AT FRANKFURT AIRPORT 26. STATIONARY LUFTHANSA AIRCRAFT, WITH SWISS AIRCRAFT ON RUNWAY IN BACKGROUND 3.43 Initials Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 8th April 2005 13:00
  • Keywords:
  • Location: FRANKFURT, GERMANY
  • Country: Germany
  • Reuters ID: LVA3TZQGLQCRLZQAE8RMS82R1YDY
  • Story Text: Lufthansa buys Swiss International Air Lines in one
    of Europe's largest airline mergers.

    Lufthansa's Chairman said on Wednesday (March 23, 2005)
    that the planned merger with Swiss International Air Lines will
    benefit everyone involved.

    "Swiss and Lufthansa fit together ideally," stated
    Wolfgang Mayrhuber, Chairman of the executive board and CEO
    of Deutsche Lufthansa in Frankfurt. Speaking at Lufthansa's
    annual news conference, he expressed his satisfaction at
    the realisation of the merger between the two companies.

    "We are two strong brands, which stand for quality,
    reliability and expertise," he added.

    Mayrhuber stated that the merger between Swiss and the
    German flag carrier would allow Lufthansa to extend their
    network and offer new destinations to customers. New routes
    are currently being investigated for the mutual 2006
    schedule.

    "There are many arguments in favour of this merger on
    both sides. The most powerful argument for me is the
    obvious advantage for customers. The customers of both
    businesses will profit, as will the customers of our Star
    Alliance partners," he said.

    Mayrhuber spoke encouragingly of Lufthansa's financial
    situation, stating that it had strengthened over the past
    year. According to Lufthansa, this has led to increased
    customer satisfaction. He continued: "Our fitness programme
    is up and running. We have become thinner, fitter and the
    company has become more efficient. Lufthansa has grown and
    has thereby become more attractive."
    Deutsche Lufthansa agreed on Tuesday (March 22) to take
    over loss-making Swiss International Air Lines, in Europe's
    biggest airline merger since Air France took over Dutch KLM
    last year. Lufthansa expects one-time integration costs of
    101 million euros (133 million U.S. dollars) on the
    takeover of Swiss, reported Lufthansa finance chief
    Karl-Ludwig Kley on Wednesday. Lufthansa expects 2005
    operating results to be on a par with 2004 after taking
    into account the integration of Swiss, the airline said.

    Lufthansa said it is proposing a 2004 dividend of 0.30
    euros per share after its 2004 operating result rose to 383
    million euros ($505 million) from 36 million in 2003. Sales
    climbed 6.3 percent to 17 billion euros in 2004.

    Lufthansa, which agreed to buy Swiss at a cost of up to
    approximately 310 million euros, is trying to make savings
    of 1.2 billion euros by 2006 to help the carrier compete in
    an increasingly tough air travel market.

    The airline said it achieved cost savings of 378
    million euros by the end of 2004 and expects additional
    savings of 402 million by the end of 2005.

    The company was weighed down by high oil costs -- which
    struck a record level of 57.60 U.S. dollars last week --
    with fuel costs rising 35 percent to 1.8 billion euros in
    2004. Fuel hedging measures reduced the bill by 232 million
    euros.

    Lufthansa said 2004 group net profit was 404 million
    euros. When reporting preliminary results three weeks ago,
    it had said net profit was about 400 million, and operating
    profit was about 380 million euros.

    Lufthansa added that it sees net cash after taking on
    Swiss debt at 380 million euros.


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