Lufhansa buys stake in Eurowings

Lufthansa is buying a 24.9% stake of Eurowings. This stake may be further increased in the future, subject to clearance from anti-trust authorities. Eurowings had a testy relationship with Lufthansa in the past, culminating in a lawsuit for anti-competitive behavior. In recent years, Eurowings has cooperated closely with KLM, providing feed to the Dutch airline’s Amsterdam hub. It has also operated 146s on behalf of Air France. The Air France contract ended in late 1999, however, and the relationship with KLM was strained by the latter’s potential merger with British Airways, who have their own German subsidiary. In the meantime, relations with Lufthansa have improved, and Eurowings has begun operating two ATR72s on “Team Lufthansa” regional services. This cooperation will now expand, with Eurowings providing services to European destinations from its home-market in North Rhine-Westphalia. At least initially, these services will be operated on a code-share basis, with Eurowings keeping its own identity.

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