Lufthansa gets EU go-ahead for Brussels Airlines deal; agrees to new slot-allocation
Lufthansa gets EU go-ahead for Brussels Airlines deal; agrees to new slot-alloca

With the German carrier Deutsche Lufthansa AG Monday agreeing to offer some of its routes to rivals, it has received a go-ahead from EU antitrust authorities for a 65 million euros acquisition of 45 percent of Brussels Airlines NV. In a deal that will entail a total acquisition cost of 250 million euros, Lufthansa will have the option to purchasing the remaining 55 percent of Brussels Airlines in 2011.

The acquisition will not only enhance the existing Lufthansa network, but also give it more premium travelers.

Talking about the Brussels Airlines deal, Lufthansa said in an e-mailed statement that it expects the arrangement to come through in nearly a week's time. The airline's statement said: "Regulatory clearance will enable both carriers to realize synergies, further strengthen their competitive position and intensify their cooperation."

Meanwhile, agreeing to the slot-allocation system, the Cologne, Germany-based Lufthansa - which has made the Brussels Airlines investment in new shares - would allow the operation of flights by comparatively-fresh carriers on four routes, including the Brussels-Frankfurt and Brussels-Zurich routes.

Mentioning the new arrangement, EU Competition Commissioner Neelie Kroes said that the wide-ranging remedies package that has been offered by Lufthansa - the second-ranking European carrier after Air France-KLM Group - will make way for market entry on certain routes, thereby providing the passengers with alternative options.
 

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