Lufthansa set to purchase Brussels Airlines

Brussels Airlines, Belgium’s primary carrier following the collapse of Sabena in 2001 and SN Brussels Airlines’ merger with Virgin two years ago, is being purchased by Lufthansa. The German flag carrier is looking to buy a 45 percent controlling stake in Brussels Airlines for a total of €65 million. It also appears very likely that Lufthansa will end up buying up the rest of the Belgian airline within the next three years, since the current sale agreement gives the German carrier the option of purchasing the rest of the company for less than €250 million in 2011.

While the current purchase plan seems to be at an advanced stage, there is still a chance that it may not go through. Regulators may still reject the buy-out for fear of decreased competition and choice for passengers, and Brussels Airlines’ board of directors will have to approve the plan in the coming weeks. Deutsche Well pointed out that what makes Brussels Airlines truly unique in Europe is that it functions independently of any larger alliance, such as SkyTeam, oneworld or the Star Alliance.

Brussels Airlines is a shadow of what Sabena once was. The carrier operates a mixed full-service and low-cost, no frills model. With a fleet of 49 airplanes and a dense network of destinations in Europe and Africa, the carrier allows passengers to travel in discount or premium economy cabins on short-haul routes. Brussels offers in-flights meals to its premium clients, but no such service to those who purchase competitive b.light fares.

Thank you to Deutsche Welle for the initial report.

www.brusselsairlines