Lufthansa acquiring Brussels Airlines

[HighInTheSky]

I think we all have to wait and see what they are planning to do. We don't have to think the worst nor do we have to be too utopic.

1 Thing is sure, LH wants SN for the African operations, so these will be upgraded. All the rest will remain a mistery until ???

[ATC]

Ok, I have read this topic from A to Z.

My conclusions, and I'm not an airline manager (like some of you ) !
I'm just a simple business man with a general interest in aviation.

1) SN Holding (and thus Bru.Air) will be a part of Lufthansa.
- The official announcement will be made within 14 days.
2) We can assume (almost 100%) Bru.Air will join *alliance.
- Lufthansa is THE founding member of the * alliance group.
- So everything that belongs to LH = * alliance.
3) Bru.Air African network will play a key role !
- we can expect everything
- Although I personnely believe the AirDC project will be back in de fridge
- I believe LH will bring 1 or 2 extra long haul airplanes in the fleet (2009) for the African operations
- more and direct destinations in Africa will be the strategy (that are being fed by the * alliance group)
4) for the rest the European destination will be streamlined with the LH network
- so maybe we will see some down cutting in this, but at this moment this is a big question mark
- I'm sure LH will study carefully which destinations are profitable and with are loss making.
- they will carefully invest the loss making destinations and if they make any sense regarding a possible feeding traffic or not
5) I don't expect any change in the transatlantic or Asia routes the coming 2 years.
- The routes will be flown in code share with the * alliance partners.
6) about the Jet Airways business,
- I think we won't see any change in the collaboration.
- For the moment Jet Airways isn't a member of any alliance and very important for Bru.Air.
- Bru.Air will not code share on all the Jet Airways transatlantic routes (but this is also the case now)

Conclusion/
I believe LH wants the best for Bru.Air !
They will search to maximize their investment be making Bru.Air strong in the African continent.
However I don't believe they will make a second SWISS airlines.
I think we can conclude if all goes well within 5 years Bru.Air will be the * alliance African specialist with a good European network and maybe 2 or 3 direct transatlantic destinations and maybe 1 or 2 Asian destinations.

Bru.Air isn't domed. Is the *alliance the best choice ? Time will tell.
But at this moment it is the only choice.
And in business there is a golden rule, "if you can beat the competition, than join them!”

grtz,
ATC

[Conti764]

Conti764, to a certain extend I share your doubts.
In the meantime there have been several semi-official announcements and comments about a possible deal with LH, but (to my knowledge) not one word about the option for a membership of Star Alliance ! Quite strange if you ask me. 9W simply continues to add more flights through BRU while SN continues advertising for double bonus miles on 9W flights as if nothing happened. On the other hand I don’t see 9W boosting its hub at BRU without home carrier SN. Theoretically SN can join Oneworld under the financial wings of LH but practically that’s utopia. And why is Oneworld that silent till now ? Indeed it got quite misty over BRU last days…

Well, the water between BRU and SN is quite deep, that's a public secret. And since Oneworld is by far the most visible alliance in the airport, combined with the comments by an OW top executive a weeks ago, I see more of a collaboration between BRU and OW then between BRU and SN, since BRU would be perfect to be a reliever hub for LHR and in lesser extend MAD.

Imagine this: in stead of flying multiple times a day to LHR, companies can choose to fly once a day to BRU instead and offer their pax lower rates on this flight then on the direct LHR-flight creating two markets: one for a direct flight for those who can and/or want to afford and a secondary flight via reliever hub BRU for those who can't or won't. This way their would be more slots available at LHR for BA to use. They could use bigger planes on the routes BRU-LHR and/or offer more connections.

But of course, all this comes from a armchair CEO

Now, regarding Star Alliance. I think it is quite clear SN would become the Europe-Africa specialist of the alliance and on its own could generate quite a big amount of *A long haul flights, although maybe not for SN, but on the other partners.

I could see SN expanding its Africa designated fleet with the help of Lufthansa, and besides that offer some long haul destinations to airports which are no *A-hubs of focus cities and this with the help and feed of the other *A partners, but only if proven successful.
We won't be seeing a bunch of 744/748 or 380 aircraft (accept maybe for LH transferring one or two 744 to SN if the Africa routes seem very popular, once the 748 is coming to Germany).

But if it would really be the plan of LH to transfer all international flights to their own hubs and drying out BRU, I guess the airport will be all to happy to tighten their ties with Oneworld.

[kiwiandrew]

.... And since Oneworld is by far the most visible alliance in the airport, combined with the comments by an OW top executive a weeks ago, I see more of a collaboration between BRU and OW then between BRU and SN, since BRU would be perfect to be a reliever hub for LHR and in lesser extend MAD....


.

Could you please clarify what you mean by the most visible alliance ?

If you are referring to the big advertising poster on the Terminal I suppose that is true but hardly a massive investment or a sign of any depth of commitment. If , by most visible you mean with the largest actual presence at BRU I would be very surprised - IIRC the following airlines are present from each of the alliances ( I am ignoring freight only ops such as CX and SQ )

Oneworld AA AY BA IB MA
Skyteam DL KL OK AZ CO ( although of course CO have announced their intention to leave Sky for Star)
Star UA LH TP BD SK LO LX OU TK MS OS US

[EBBR]

Different sources mention a b.air job security for the next 2 years, but this weekend this has been denied. This is a strange statement and this somehow worries me.

[Conti764]

.... And since Oneworld is by far the most visible alliance in the airport, combined with the comments by an OW top executive a weeks ago, I see more of a collaboration between BRU and OW then between BRU and SN, since BRU would be perfect to be a reliever hub for LHR and in lesser extend MAD....


.

Could you please clarify what you mean by the most visible alliance ?

If you are referring to the big advertising poster on the Terminal I suppose that is true but hardly a massive investment or a sign of any depth of commitment. If , by most visible you mean with the largest actual presence at BRU I would be very surprised - IIRC the following airlines are present from each of the alliances ( I am ignoring freight only ops such as CX and SQ )

Oneworld AA AY BA IB MA
Skyteam DL KL OK AZ CO ( although of course CO have announced their intention to leave Sky for Star)
Star UA LH TP BD SK LO LX OU TK MS OS US

Advertisement. You mentioned the big poster at the old terminal, but the Oneworld powerchargers throughout both the A-pier and the B-pier, the advertisements on the concrete crossings supporting the ceiling of the B-pier (don't know the exact English word for them) from B01 all to B40 and the several advertisements in the 1995 terminal.

Maybe Oneworld is only advertising at BRU, but is is remarkable how much more they advertise then the two other alliances. Someone who isn't really into aviation might think it already is a Oneworld hub.

[b-west]

Most likely LH will streamline the flights to Germany. But why would they cut heavily in the non-German flights? I don't think passengers who now fly BRU-EDI or something the likes will be willing to go to FRA or DUS or any other LH hub. And if LH would be so stupid as to make SN a mere feeder, with no real network of its own, then they can be sure they'll lose lots of costumors and revenue to airlines who will be more than eager to fill the hole.

With the acquisition of SN, LH gets themself an airline with potential in an under-used airport. Alot of money to be made if they're willing to invest.

[itami]

(1) BA has not really shown any interest, have they? And that not only goes for BruAir but the same for AZ or Austrian. They simply do not seem to be interested (or aible?) to take over a continental European Airline, except for the merger with Iberia of course.
(2) London is not really that far away from BRU as well, so the location of BRU would not really be that helpful for OW. From BA's point of view Austrian would make much more sense than BruAir actually.

BA now interested in Austrian Airlines ! http://c.moreover.com/click/here.pl?r1580525653

The problem with OW and BA is not the distance but the slot restrictions at LHR !.. and with a goof HST connection (< 2 hours!)....

So why not SN ?

[airazurxtror]

"De Tijd" claimed last saturday that Brussels Airlines had guaranteed that all jobs would be kept for at least two years for all its employees.
Brussels Airlines denies having ever given such a guarantee and claims to be unable to do so, given the economic conjuncture and the high price of fuel.

[LX-LGX]

"De Tijd" claimed last saturday that Brussels Airlines had guaranteed that all jobs would be kept for at least two years for all its employees. Brussels Airlines denies having ever given such a guarantee and claims to be unable to do so, given the economic conjuncture and the high price of fuel.

Source was a press release from the unions, referring to a statement from ownership on the Ondernemingsraad / Conseil d'Entreprise. This company meeting is a legally obliged structure where unions formally can ask questions about the company, and where major plans by ownership have to be announced formally. The Ondernemingsraad / Conseil d'Entreprise was convoqued last Friday, after press reports on Thursday that Lufthansa was interested in Brussels Airlines.

So this is what probably happened: the unions did their thing = they've asked what was going on. The ownership did their thing = they've said "nothing is formally decided yet" - probably adding "that there won't be a total take over before 2010" - probably adding "but we don't foresee job cuts within the next two years". Which the unions then have translated into "job guarantuee for two years".

[regi]

I guess that the 1 euro flights to Berlin will be gone now?

[Ducatibiker]

It is not sure that the one euro flight will be gone. Swiss is still marketing its flights independently.

[Airbus330lover]

Indeed but ... the flight to Berlin could be operated by LH, (as for the others german SN destinations)...and bye bye 1€ flights

[euroflyer]

Indeed but ... the flight to Berlin could be operated by LH, (as for the others german SN destinations)...and bye bye 1€ flights

And even if the flights to Berlin and the rest of Germanywill be operated by SN (which I still think is quite likely) they will not be sold anymore for 1€ ... Very bad for us pax , but might in return be positive for SN's balance sheet

[Airbus A330]

It will be announced soon,

I guess you have 15 September in your mind

What did i miss about 15 September?

What will happen on 15 September ? Is it the date of the official announcement ?

[Atlantis]

This is indeed the unconfirmed, by both parties, date for the announcement.

[Airbus A330]

OK thanks !

[LX-LGX]

Lufthansa and Brussels Airlines in negotiations over strategic equity investment

Thursday, August 28, 2008

Deutsche Lufthansa AG and SN Airholding SA/NV, the parent company of Brussels Airlines, are in constructive negotiations over an equity investment in SN Airholding. The intention of the negotiations is a collaboration with Brussels Airlines as self-dependently operating airline within the Lufthansa affiliated group. Brussels Airlines has not been involved in an alliance to date. It operates services from the Brussels hub within Europe and also specialises in flights to Africa.

Lufthansa plans to initially acquire 45 per cent of SN Airholding at a proposed price of EUR 65m in the course of a capital increase. After two years and beyond Lufthansa would be authorised to exercise an acquisition option for the remaining 55 per cent. The price of this option is linked to the prospective performance of Brussels Airlines.

As communicated earlier, Brussels Airlines envisage integrating a commercial alliance and analyses opportunities for industrial partnership potentially leading to a financial participation. This project will allow the company to better reach its strategic objectives being to offer its clients a more competitive and dense European network and to continue its growth strategy in Africa.

Over the next few weeks, Lufthansa intends to examine SN Airholding and conclude negotiations as to the contractual details. The planned equity investment in SN Airholding is yet to be approved by the Supervisory Board of Lufthansa, the Board and the shareholders of SN Airholding and the antitrust clearance.

Both companies will inform about the progress of the negotiations in due time and have agreed on maintaining silence until then.

Source: Brussels Airlines press centre:
http://company.brusselsairlines.com/en/ ... :141-18905

[sn26567]

Lufthansa and Brussels Airlines in negotiations over strategic equity investmentSource: Brussels Airlines press centre:
http://company.brusselsairlines.com/en/ ... :141-18905

... as already reported here: viewtopic.php?p=207359#p207359

[itami]

BA and AA are waking up ! Are they able to offer a better price for SN ?http://www.standaard.be/Artikel/Detail. ... anaalid=18
A couple of exciting weeks to come ?
And the shareholders indeed want more : http://www.trends.be/nl/economie/bedrij ... -euro.html