German aviation group Deutsche Lufthansa AG (DLAKY.PK, DLAKF.PK) is interested in buying state-owned Portugese carrier Transportes Aereos Portugueses as part of its efforts to tap into the fast growing Latin American market, the Financial Times reported Tuesday.
Christoph Franz, Chief Executive Officer of Lufthansa, reportedly told the Financial Times that the German airline would look at the case for buying Transportes Aéreos Portugueses or TAP, which is set to be privatised this year.
TAP is the national airline of Portugal and has been a member of the Star Alliance since March 2005. Privatization of the airline is part of Portugal's 78 billion euro bailout agreed by the European Union and the International Monetary Fund.
Franz reportedly said that TAP could be potentially attractive to Lufthansa as it is a leading European provider of flights to Brazil.
"TAP is one of the larger carriers who manage the gateway to Latin America, and that is clearly a good reason to at least listen if your colleagues at TAP are giving you a phone call," Franz was quoted by the FT report as saying.
International Consolidated Airlines Group or IAG (BAY.L, BAIRY.PK, IAG.L), the combined entity of British Airways Plc and Spanish carrier Iberia Airlines, has reportedly already expressed an interest in acquiring TAP.
Lufthansa's move to consider the acquisition of TAP would likely set the scene for a bidding war for the Portugese airline.
DLAKY.PK closed Tuesday's trading at $11.00, down $0.54 or 4.68 percent on a volume of 19,864 shares.
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