Association of European Airlines (AEA) announced (29-Nov-2013) the appointment of Turkish Airlines CEO Dr Temel Kotil as chairman of AEA, effective 01-Jan-2013, taking over the chairmanship from Mr Bernard Gustin, CEO of Brussels Airlines who was chairing the association for the last two years. Under the new governance structure, Dr Kotil will be the first pesident of the Association. AEA has also unveiled its new logo at the Aviation Leadership Summit, held over 28/29-Nov-2013. [more - original PR]
Turkish Airlines CEO appointed as new president of Association of European Airlines
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Lufthansa to complete takeover of Brussels Airlines for possible integration into Eurowings
Lufthansa's supervisory board has approved the exercise of its call option to buy the remaining 55% of SN Airholding, the parent company of Brussels Airlines. Lufthansa acquired 45% of the company in 2009 and negotiated the option to buy the balance of the shares for no more than EUR250 million. The deal is expected to close in early 2017, once the details of the purchase have been agreed with the other SN Airholding shareholders.
Lufthansa and Brussels Airlines have an extensive codeshare agreement and are partners in the Star Alliance. Their existing relationship is such that Brussels Airlines already feels like a member of the Lufthansa Group. The main draw for Lufthansa has always been its Belgian partner's extensive African network (it is the number two airline on Western Europe-Central/Western Africa).
However, it now seems that Lufthansa will, at least partly, integrate Brussels Airlines into its Eurowings low cost brand. Lufthansa is keen to accelerate Eurowings' expansion through partners (and is also to wet-lease up to 35 aircraft from airberlin). Brussels Airlines' fleet and single-class configuration on short/medium haul should fit with Eurowings, but its unit cost and network airline business model are not characteristic of an LCC.
Lufthansa linked to possible acquisitions of SAS, Brussels Airlines & Condor. Eurowings is priority
Numerous media reports have speculated that Lufthansa may be on the acquisition trail. Group CEO Carsten Spohr told Bloomberg that consolidation in Europe is needed and that Lufthansa wants to be a part of it (Bloomberg, 22-Apr-2016), but did not identify specific targets. Moreover, Mr Spohr said the Group was concentrating on making sure that its LCC platform Eurowings worked first.
Interestingly, however, the reports have specified three possible acquisitions, in each case suggesting that they could be used as part of the Eurowings project. The three are SAS, Brussels Airlines and Condor Flugdienst (part of the Thomas Cook Group). In all three cases, there are historical and/or cultural reasons to suggest that some form of closer cooperation, including the possibility of acquisition (or partial acquisition), could feasibly be up for discussion.
Lufthansa's partnership with SAS goes back to the time before they were both involved in setting up the Star Alliance, while Lufthansa is already a minority shareholder in Brussels Airlines and a former shareholder in Condor. Of the three, only Condor could be a realistic candidate to become part of the Eurowings operation. None of these possible Lufthansa acquisitions would significantly change European airline market structure.