Lufthansa expects annual synergies of EUR 450 million with TAP

A Lufthansa foresees annual net synergies of up to EUR 450 million with TAP and agreed with the State a mechanism to raise dividend distribution by 75%, the German group announced today.

At a telephone conference with analysts and investors, Lufthansa’s financial director, Till Streichert, explained that most synergies should be generated at TAP, and also agreed with the Portuguese Government a mechanism for progressive increase in dividend distribution, which could reach 75%.

According to the person responsible, this mechanism will enable Lufthansa to benefit from the gains generated in the Portuguese carrier while holding a minority stake, and it is not necessary to acquire the majority of the capital in order to achieve the expected synergies.