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Lufthansa Takes Minority Stake In Brussels Airlines
September 17, 2008
Lufthansa is planning on swallowing up Brussels Airlines in a two-step process. First, for E65 million, Lufthansa is taking a 45% stake in the company. If all goes well Lufthansa will then have the option to acquire the remaining 55% of the company in 2001, however it seems there will be little integration between the two companies.
The plan is for Brussels Airlines to operate as a largely independent company in the Lufthansa Group. Brussels Airlines is expected to retain its headquarters and management in Brussels. It will also continue operating with its own aircrafts and crew.
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. Lufthansa employs around 105,000 employees and operates a fleet of 513 aircraft. Brussels Airlines operates a fleet of 49 aircraft with a workforce of about 3,000 staff.
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