Story ID: GPluftbrussels09282016
Lufthansa to Complete Brussels Airlines Take Over
By: Gregory Polek
Caption: German company to take remaining 55 percent of SN Airholding through exercise of call option
Word Count: 350
Lufthansa’s supervisory board has approved a plan to acquire the remaining 55 percent share of SN Airholding, the parent company of Brussels Airlines, through the exercise of a call option, the German company announced Wednesday. The approval paves the way for the German flagcarrier’s full ownership of Brussels Airlines.

In a statement, Lufthansa said it aims to reach a final agreement on the “modalities” of the exercise of the call option with SN Airholding shareholders by the end of the year. It expects to conclude the transaction at the beginning of 2017.

Lufthansa bought 45 percent of Belgium-based SN Airholding in 2009 for €65 million ($73 million), with an option to acquire the rest starting in 2011.

Plans call for discussions between Brussels Airlines, Lufthansa, shareholders and other parties involves to take place next month. In its own statement, Brussels Airlines insisted it will maintain its company brand name and that managing the various operations will require a “decision center” in the Belgian capital.    

“The objective of the ongoing discussions between Lufthansa and Brussels Airlines is to keep the specifics of Brussels Airlines and to ensure the growth of its activities by keeping employment in Belgium,” it said. “These specifics are its business model, based on both point-to-point and connecting traffic, and its African and intercontinental network, which contribute to the hub development of Brussels. The governance of Brussels Airlines in 2017 is also on the agenda. Keeping a decision center in Brussels is necessary in order to manage these different operations.”

Meanwhile, Deutsche Lufthansa signed a letter of intent calling for the wet lease of 11 Airbus A319s and 29 A320s from Air Berlin, which would operate the airplanes for Lufthansa Group companies Eurowings and Austrian Airlines. The LOI calls for the six-year agreement to start with the beginning of the 2017 summer schedule on March 26. Under the new agreement, Eurowings would lease 35 further aircraft from Air Berlin, which would fly in Eurowings livery. Austrian Airlines would lease another five Air Berlin aircraft. The sides plan to complete the deal during the fourth quarter.