UPDATE:Lufthansa Makes Concessions To EU In Brussels Air Deal
28 April 2009 - 9:44PM
Dow Jones News
Deutsche Lufthansa AG (LHA.XE) has offered the European
Commission concessions over some of its flight routes to overcome
antitrust concerns about its planned acquisition of a 45% stake in
SN Holding SA, the parent company of Brussels Airlines.
The German carrier has made concessions to the commission on
some flight routes that both Lufthansa and Brussels Airlines are
offering, said Lufthansa board member Stefan Lauer at a cartel
conference in Hamburg Tuesday.
Lauer made the comments in response to an announcement by the
commission, which earlier Tuesday said it had extended the review
of Lufthansa's planned purchase of SN Holding shares by 15 days to
study commitments made by the airlines.
Lauer declined to provide more details about the concessions
made to the commission. In airline deals, such concessions are
typically offers to give up landing slots at airports.
Lauer said that Lufthansa and Brussels Airlines have been in
"constructive" talks with the commission for a while, adding he
will attend a meeting in Brussels in coming days to further discuss
the concessions with E.U. officials.
The commission in January launched an in-depth investigation
into the deal after an initial study showed the combined carriers
"could significantly impede effective competition," particularly
for routes between Belgium and Germany and Belgium and Switzerland.
Under the terms of the deal, Lufthansa will pay EUR65 million to
buy 45% of the company, with an option to buy the rest of the
business in 2011.
Company Web site: www.lufthansa-financials.com
-By Kirsten Bienk and Jan Hromadko, Dow Jones Newswires; +49 69
29 725 503; jan.hromadko@dowjones.com
(Adam Cohen in Brussels contributed to this report)
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