Air France-KLM 'perhaps' interested in easyJet, but not actively looking
Air France-KLM's Position on Potential Airline Acquisitions
By Hugo Lhomedet
PARIS, June 12 (Reuters) - Air France-KLM does not rule out looking at easyJet if it were approached about a deal to buy the British low-cost carrier but has not studied the matter closely, Air France-KLM CEO Ben Smith said on Friday.
Current Relationships and Discussions
Smith told the Paris Air Forum that U.S.-based Castlelake, which has said it is considering an offer for easyJet, had not contacted Air France-KLM about a potential transaction. Air France-KLM and Castlelake have a partnership in Scandinavian carrier SAS that Smith described as positive.
Interest in easyJet
EASYJET INTEREST
"We have not had any discussions with Castlelake to join them in a bid. They have not asked us. As far as I'm aware, they have not asked Lufthansa or IAG," Smith told the conference hosted by La Tribune.
"So would we be interested in doing something with them? Perhaps," he said.
"There are some amazing assets that easyJet has, which I think any airline would be interested in looking at. But as far as are we actively looking at easyJet? No."
Castlelake's Potential Offer
Castlelake said last month it was in the early stages of considering a possible offer for easyJet that would be over 403.23 pence per share, though no approach has been made to its board. It has until June 26 to make a firm bid or walk away.
EasyJet has said a potential takeover bid by the U.S. investment firm would be "highly opportunistic."
Competition for TAP Air Portugal
TAP RACE
Smith also said he was strongly committed to securing Portuguese carrier TAP, for which Air France-KLM has issued a non-binding offer in competition with Lufthansa.
Strategic Importance of TAP
"The Iberian subcontinent is extremely strategic and it's very geographically well-placed to access Latin America," Smith said when asked how important the acquisition was.
Major Hubs and Alliances
He said there were only two major hubs on the Iberian Peninsula: Lisbon, TAP's home base, and Madrid, which is controlled by IAG-owned Iberia. TAP is currently part of Star Alliance, alongside Lufthansa.
"There are three European groups and two hubs on the Iberian Peninsula, and somebody is going to be without a partner," Smith said. "So for us, it's very important that we be the group that gets their hands on the second group."
(Reporting by Hugo Lhomedet, additional reporting by Tim Hepher; Editing by Elaine Hardcastle)
