Lufthansa in contact with Norwegian Air, CEO says

Getty Images

Lufthansa airplanes at waiting position on the first of a two-day strike at Frankfurt Airport on November 23, 2016 in Frankfurt, Germany.

Lufthansa is in contact with Norwegian Air Shuttle, also the subject of bid interest from British Airways owner IAG, the German group’s chief executive told a German daily, sending Norwegian’s shares higher.

“In Europe, everyone is talking to everyone. There’s a new wave of consolidation approaching. That means we are also in contact with Norwegian,” Carsten Spohr was quoted as saying by Sueddeutsche Zeitung on Monday.

Asked whether Norwegian would fit with the Lufthansa group, Spohr said: “Takeovers are always a question of strategic value, the price and anti-trust. There are no easy answers.”

Since IAG announced it had bought a stake in April, Norwegian Air has said it has received enquiries from several parties regarding acquisitions, transactions and other forms of cooperation.

Norwegian Air’s shares opened 10 percent higher in Oslo and by 0745 GMT traded 8.9 percent higher at 271.00 crowns. Lufthansa shares were up 0.6 percent, outperforming a 0.5 percent weaker DAX index.

Norwegian Air was not immediately available for comment. After the failures of Air Berlin and Monarch last year, airline executives have predicted more consolidation this year in Europe, especially as rising oil prices make life tougher for carriers with weaker finances.