Spanair Considering Its Future as Qatar Airways Scraps Bid
Qatar Airways Ltd., the second- biggest Gulf carrier, pulled out of talks about a bid for Barcelona-based Spanair, prompting it to call a board meeting to consider its future, a spokesman for the European company said.
The regional government of Catalonia, or Generalitat de Catalunya, informed Spanair that Qatar had withdrawn from negotiations, Josep Garriga said today by phone. The government indicated it may stop financing the business, he said.
“We’ve been in talks with airlines to add a strategic partner,” Garriga said. “Qatar Airways, one of the companies interested, isn’t interested anymore, according to Generalitat.”
An official in the economy department of the Catalonia government said that Qatar Air had ended talks, while declining to be identified, in line with policy. Current regulations cap investment from beyond the European Union in a carrier based there at 49 percent of stock. Qatar Air spokesman Updesh Kapur declined to comment from the company’s base in Doha.
Spanair’s board is meeting today to decide the future of the company, Garriga, said while declining to comment on whether it will cease to operate. The carrier is preparing to inform Spain’s civil aviation authorities of the suspension of operations, the Efe newswire said in a report on the La Vanguardia newspaper’s website, citing unidentified people.
SAS Sale
SAS AB (SAS), the biggest Nordic carrier, sold 80.1 percent of Spanair in March 2009 to a group of investors led by Consorci de Turisme de Barcelona and Catalana d’Iniciatives, with a subsequent capital injection reducing its holding to 11 percent.
Qatar Air Chief Executive Officer Akbar Al Baker said Jan. 19 that he had “identified” a European purchase or purchases to add to an investment in Luxembourg-based Cargolux International SA, the region’s largest specialist freight airline, last year.
Spain’s Expansion newspaper reported Oct. 27 that Qatar Airways was mulling a bid for Spanair. Citing people close to the Catalonian company, it said an offer might consist of cash or planes to allow it to add long-haul services.
Al Baker declined to comment further on Qatar’s takeover ambitions yesterday during a visit to London’s Heathrow airport.
“Whenever we talk about any airline, immediately their share price rises, so I had better keep very quiet,” he told reporters. “Options are always available to us and we will always consider something which would really fit well.”
Abu Dhabi-based Etihad Airways said Dec. 19 that it had agreed to provide Air Berlin Plc with $350 million in equity financing and funds for planes while lifting its stake in the German discount carrier from 2.99 percent to 29.2 percent.
To contact the reporter on this story: Manuel Baigorri in Madrid at mbaigorri@bloomberg.net
To contact the editors responsible for this story: Chad Thomas at cthomas16@bloomberg.net; Kenneth Wong at kwong11@bloomberg.net
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