Lufthansa German Airways late yesterday announced the purchase of 45 percent of Brussels Airlines, Belgium's national carrier, for €65 million and said it planned to acquire the remaining 55 percent in 2011.
After it exercises its option to acquire all of the Belgian carrier, which it said would not exceed €250 million, Lufthansa said Brussels "will operate as a largely independent company in the Lufthansa Group," and "retain its headquarters and management in Brussels," much in the manner that Lufthansa operates Swiss International Air Lines, which it acquired in 2005
(BTNonline, July 5, 2005).
Eighteen-month-old Brussels, which flies to more than 50 cities in Europe and Africa, will begin the application process to join the Star Alliance, Lufthansa said.
"Together we can offer more destinations, optimized connections, mutual use of each other's frequent flyer programs and extended lounge access, which will enhance the attractiveness of the portfolios of both airlines," said Lufthansa chairman Wolfgang Mayrhuber.