Azul SA is not currently engaged in negotiations for a possible acquisition offer for struggling Avianca Brasil, Azul CE John Rodgerson said Friday. But he acknowledged there could be space for a possible deal with Brazil’s fourth largest airline, which filed for bankruptcy protection this week. “Their bankruptcy protection case is very recent. It is possible that, in the future, we take a look at it, but right now there is nothing,” he said, nothing he will watch the “natural course” of the case. His remarks followed a report in financial newspaper Valor Econômico that said the company was considering making an offer to buy Avianca Brasil. Quoting Azul’s chairman David Neeleman, the paper said Azul was evaluating that possibility for the “short term” and that, if it goes ahead, the acquisition would be paid for using Azul’s available cash. Rodgerson said the company is obliged to evaluate all market opportunities, but that there was “nothing happening” at the moment regarding a possible offer for Avianca.<br/>
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Lufthansa is in early talks about a possible tie-up between its LSG Group catering unit with partners such as Austria’s Do&Co, Singapore’s SATS and Switzerland’s Gategroup, people close to the matter said. Lufthansa is exploring its options with the help of Morgan Stanley, but has not launched a formal sales process, sources said. CE Carsten Spohr said last month that the German airline was considering divesting LSG. “We have not defined whether this (sale) would go ahead, or whether we would hold on to LSG in full,” he told the Boersen-Zeitung newspaper, adding the company would not support a sale to private equity. A Lufthansa spokesman said the airline had no additional comment. SATS, Do&Co, Gategroup owner HNA and Morgan Stanley declined to comment. A deal could value LSG at roughly E1b, people close to the matter said, but noted that antitrust issues might prevent some players from being able to buy all of LSG’s assets, meaning a partial sale is also possible. Vienna-listed Do&Co, which has a market capitalization of E830m, is too small to do a deal on its own, the sources said. Do&Co has therefore reached out to investors who could potentially help it finance a deal, they said.<br/>
United on Wednesday announced a major international expansion at San Francisco International Airport. The airline said it plans to add flights between San Francisco and Melbourne, Australia, New Delhi, Toronto and to boost service to Amsterdam and Seoul, South Korea. United CEO Oscar Munoz said it's the largest international expansion United has ever done in San Francisco. "We really feel it secures United as the premier gateway to the Pacific," he said. United had teased the new routes as a "historic package of new and expanded international routes" prompting hours of online speculation about the new flights, including possible flights to Africa. (No flights to Africa were announced.) "It's a capstone to 2018, which I think truly is a breakthrough year for United," Munoz said. Story has more flight details.<br/>