Article Written by Giacomo Robortaccio & James Field
MIAMI – According to La Libre Belgian newspaper, the partnership between Brussels Airlines (SN) and the Lufthansa Group is reaching the end.
The partnership could end shortly where Lufthansa Group would put 55% of its shareholding up for sale or in the worst case scenario SN would go bankrupt.
Too much trouble for Lufthansa
The Lufthansa Group, following the worst era for aviation, is already dealing with main company issues and it does not want to deal with the Belgian subsidiary for social agreement.
Brussel Airlines is currently resuming its flights after three months of hibernation due to the Covid-19 crisis, but after the news, the future appears unclear for the carrier.
Things could, however, accelerate for the worst in the coming days.
According to an internal source, the management of Brussels Airlines should meet with the management of its parent company, the Lufthansa Group, this Monday, with a plan that will determine its future.
BREXIT to endanger the partnership
Reuters reported the takeover of Brussels from Lufthansa back in 2016, with the carrier aiming to double the size of its low-cost wing Eurowings with aircraft from the Belgian carrier.
The German airline purchased the last 55% of the Belgian carrier for US$2.7m as per an exercised option, meaning that up to 51 aircraft would tie in with the Lufthansa Group overall.
However, such a partnership would be in danger because of BREXIT and falling ticket prices, not to mention the ongoing pandemic, too.
The end in nigh
If the partnership was to end, then it would conclude what has been an 11-year relationship that Lufthansa has had with Brussels Airlines. The Group initially purchased a 45% stake in the airline back in 2009.
It will ultimately be interesting to see what will happen to Brussels Airlines, especially in the wake of a pandemic that is causing its parent company to restructure, and then some.
The question is, will Brussels survive, and if so, could it do so on its own if the worst-case scenario ever occurred?