Lufthansa acquires 45 percent stake in Brussels Airlines
Published: 16 Sep 2008
Lufthansa has signed an agreement with SN Airholding, which initially envisages a strategic stake in SN Airholding SA/NV and, in a second step, the full integration of the Belgian carrier in the Lufthansa Group.
The agreement still requires the approval of the regulatory authorities and the Lufthansa Supervisory Board as well as the Board of Directors and shareholders of SN Airholding SA/NV.
In a first step, Lufthansa is taking a stake of 45 percent in SN Airholding SA/NV for €65 million via a capital increase. After securing the air traffic rights of Brussels Airlines, Lufthansa will then have an option of acquiring the remaining 55 per cent from 2011. It would then wholly-own the Belgian carrier. The price for taking up the remaining 55 per cent depends on performance-related factors so that the cost for complete acquisition of Brussels Airlines could amount to a maximum of €250 million.
According to a release, the jointly drafted integration model is shaped along the lines of the successful cooperation between Lufthansa and SWISS.
It envisages that Brussels Airlines will operate as a largely independent company in the Lufthansa Group subject to its uniformly formulated targets, strategic guidelines and financial resources. It will continue operating and developing its strengths under its familiar brand with its own aircraft and crew, and expand its local advantages in the Belgian market. That includes a demand-driven route network including intercontinental connections. The Lufthansa hubs in Frankfurt, Munich and Zurich will complement the overall services offered to customers in accordance with specific market potential, customers' preferences and cost structures.
Lufthansa Chairman Wolfgang Mayrhuber emphasised that the bundling of strengths was necessary and sensible in order to strengthen competitiveness and overall cost efficiency.
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