Lufthansa will not rush into more takeovers given current economic uncertainty but will also not stand by and do nothing as the industry consolidates, the airline's head said.
"We want to be active, we will be active, but we will not let ourselves be drawn into something that will end up harming the company," Wolfgang Mayrhuber told the carrier's annual shareholder meeting in Cologne on Tuesday.
Lufthansa's name has frequently come up as a possible buyer of other European airlines following the purchase of rival Swiss, which was fully consolidated in its accounts last year.
The German airline had refrained from bidding for loss-making Italian carrier Alitalia because of too high financial risks, although it was continuing to monitor the situation with Spanish rival Iberia.
Talks were ongoing about a merger of Lufthansa's Germanwings budget carrier with domestic peer TUIfly.
Mayrhuber also confirmed that the airline had resolved to exercise its option to buy the majority of UK airline bmi in two stages in the next two years. The timing and price had already been agreed with bmi majority owner Michael Bishop and the money had been set aside for the transaction.
Mayrhuber added that he remained confident that the outlook for the aviation industry was "good" and confirmed that the airline still hoped to raise its operating result this year if possible.
But the uncertainty on financial markets, oil prices at record levels, the possible consolidation of air traffic in the United States and the "unbroken rapid expansion course of the Gulf carriers" would challenge the group.
"We have enough thrust for another ascent and we have the flexibility to slow down in case of downwash. The record-breaking year 2007 will not be a one-hit wonder," Mayrhuber said.
The chief executive also told shareholders on Tuesday that he planned to step down from the post he has held since 2003 when his contract runs out at the end of 2010. The Austrian manager would then be 63.
