I don't know why some of you are shocked by my suggestion that LH may sell SN.
The industry is in dire straits and whenever this happens, consolidation (M&A) happens.
If anything, I can see LH selling SN because SN could be a desirable purchase target.
If anything, such a sale would be SN saving LH's butt.
Factors that would motivate LH to sell:
-Covid-19 is not gone yet and yields and load factors are bad going forward. SN is dumping tickets at any price they can find a buyer. It's not because Belgian politicians want to give you the illusion that covid is gone, that it is gone. Wait a few weeks and we'll be talking about lockdowns again.
-SN's financial results were not stellar in very good times, but LH had the luxury of sitting on billions of profits and keep SN as a strategic branch.
-LH is losing money and they are in survival mode, as any other airline in Europe. When your ship is sinking, you have to make choices. Do you save the befriended neighbor or the wife and children?
Other factors that may result in a sale:
-Capital markets are flooded with cash, thanks to excessive money printing. Airline groups are toast but there are many funds and financial entities sitting on mountains of cheap cash who are looking to make a return on that cash. Many are looking for emerging markets exposure, and SN can offer that while maintaining the security of being established in a stable country.
This could result in an attractive offer.
So I feel that SN is ripe for a sale and I would not be shocked if something like this happens soon. It could be in a month, it could be in 6 months, maybe a year.
If you follow aviation news, you would know that Wizz Air made a move on Easyjet just the other day. There's a lot of risk-taking going on, much of it is a t lunatic levels.
If you look at how overvalued some companies like Tesla are, I think that someone could make LH an offer for SN that LH can't refuse.
https://www.theguardian.com/business/20 ... ising-push
If you are a SN fan, don't feel insulted.
For once, I'm saying that SN could be worth something, that it could be a desirable purchase target.