Lufthansa in Discussions for Bid for Brussels Airlines

Lufthansa, the German flag carrier, said that they are negotiating constructively with SN Airholding, which is the parent company over Brussels Airlines, for a 45 percent equity investment into the company.  They said that their offer is also inclusive of an option to take over the airline completely in the future.  Their airlines say that the negotiations are expected to produce an integration, where Brussels airlines will be the carrier operating dependently within the affiliated group of Lufthansa.  The statement also said that the negotiations are anticipated to be completed during the upcoming weeks.

This confirmation comes after the speculation of an agreement last spring, following Etienne Davignon, the Chairman of Brussels Airlines, acknowledging that SN Airholding was in negotiations for an alliance membership.  Davignon said that a potential financial participation from a new shareholder may only be considered with the condition that Brussels Airlines’ identity, autonomy, and sustainable future are guaranteed.

The proposal that is being considered will have Lufthansa purchase 45 percent of the holding from SN Airholding for around 65 million euros via a capital rise and retain the option for purchasing the rest of the holding after 2 years is up.  The price will be connected to the performance of SN Airholding.  Virgin Group is the biggest shareholder of SN Airholding at 29.9 percent, which is the result of a merger in 2006 between Virgin Express and Brussels Airlines.

Lufthansa is bidding for the holding in Austrian Airlines too, as well as having discussions with Thomas Cook and TUI Travel about a potential merger of their budget carriers.

Learn more at:  www.lufthansa.com