Lufthansa officially takes over Brussels Airlines

German airline Lufthansa has officially confirmed it will exercise its option to acquire 100% of Brussels Airlines. The Belgian airline will be folded into Lufthansa’s low-cost Eurowings Group.

“We believe in the Brussels market and in Brussels Airlines and its staff,” said Lufthansa CEO Carsten Spohr, before giving an assurance the name Brussels Airlines brand would be retained, at least for the next two years. “We have shown that we appreciate the strength of a local brand, with, for example, Swiss.” Lufthansa took over the remains of Swissair in 2007.

The following year, Lufthansa took a 45% share in Brussels Airlines, effectively rescuing it from disaster. It simultaneously obtained an option to acquire the other 55% at a fixed price, with a deadline of this year. That allows Lufthansa to now take over the whole airline – valued at €200 million – for a price of only €2.6 million.

The Eurowings group to which Brussels Airlines will belong is a low-cost airline offering long- and short-haul flights, throughout Europe and in the US, Dominican Republic, Thailand and Cuba. It also has codeshare agreements with airlines in Canada, Japan, Austria and the US.

Lufthansa also announced it would invest €600 million in long-distance aircraft to replace some of Brussels Airlines’ existing fleet, adding seven planes leased for a period of 20 years. And to stress the local character, star chef Yves Mattagne of Brussels’ Seagrill will provide the meals, while brewery Brasserie de la Senne delivers the beer.

Brussels Airlines board chair Etienne Davignon stressed there would be no restructuring of the company and no loss of jobs. “The last eight years has proven the potential of our co-operation with Lufthansa for future opportunities and maintaining employment.”

Photo courtesy Brussels Airlines