Seeking Alpha

Lufthansa, Air China looking into joint venture

  • Lufthansa (DLAKY) and Air China are considering a commercial joint venture on routes between China and Europe, due to rising competition and decreasing domestic business.
  • European carriers are seeking stronger ties into growth markets like China to offset shrinking European business. Joint ventures allow airlines to closely coordinate operations and ticket pricing. On certain routes, the airlines can even operate like a single carrier without violating antitrust rules.
  • Lufthansa already has revenue-sharing joint ventures with United Continental, Air Canada and ANA Holdings.
Comments (1)
  • Shaduc
    , contributor
    Comments (1634) | Send Message
     
    Any JV with Air China is just downgrading the brand!
    6 Jul 2014, 05:38 PM Reply Like
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