Lufthansa acquires 45% stake in Brussels Airlines

16th Sep 2008

Lufthansa’s acquisition of Brussels Airlines has taken a major step forwards, after the German carrier took a 45% stake for Eur65m via a capital increase, as well as signing an agreement that will see full merger by 2011, subject to regulatory and shareholder approval.After securing the air traffic rights of Brussels Airlines, Lufthansa will then have an option of acquiring the remaining 55% from 2011. It would then wholly-own the Belgian carrier.

The price for taking up the remaining 55% depends on performance-related factors so that the cost for complete acquisition of Brussels Airlines could amount to a maximum of Eur250m.

The jointly drafted integration model is shaped along the lines of the 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 also stipulates that, after exercise of the option, Brussels Airlines would retain its headquarters and management in Brussels. 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 integration is designed to enable Brussels Airlines to operate in a demanding market environment, to develop further, attain its growth targets and raise its profitability, and thereby offer customers and staff better long-term perspectives.

Lufthansa Chairman Wolfgang Mayrhuber emphasised that the bundling of strengths was necessary and sensible in order to strengthen competitiveness and overall cost efficiency, saying: “Together we can offer more destinations, optimised connections, mutual use of each other’s frequent flyer programmes and extended lounge access, which will enhance the attractiveness of the portfolios of both airlines.”


The airlines in the Lufthansa Group carried 63 million passengers to 208 destinations last year. A total of 5.8 million passengers flew with Brussels Airlines and its partners. Brussels Airlines operates in a network encompassing 62 destinations. The merger will add a further 12 destinations to the Lufthansa network, the number on offer to Brussels Airlines customers will rise by 133. Lufthansa employs around 105,000 employees and operates a fleet of 513 aircraft (consolidated fleet). Brussels Airlines operates a fleet of 49 aircraft with a workforce of about 3,000 staff.


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