Germany’s Lufthansa, Air China Mull Joint Venture on Routes
By Esther Tanquintic-Misa | July 7, 2014 3:18 PM EST
German airline Lufthansa will be entering into a joint venture with Air China that will see the two airlines share revenue on certain routes in Asia by selling each other's flight tickets. The routes are situated between China and Europe.
Air China's inaugural flight from Beijing to Washington arrives at Dulles International Airport in Virginia June 10, 2014. REUTERS/Gary Cameron (UNITED STATES - Tags: TRANSPORT BUSINESS)
The carriers are both members of the Star Alliance, the world's biggest. The other aviation alliances are SkyTeam alliance and Oneworld alliance.
"We aim to deepen and further expand our relationship in the face of rising competition from other airline alliances," the WSJ quoted an unidentified official at Air China.
The routes on which the two airlines will share were not revealed as of yet.
This won't be the first time an agreement of sorts will be made between Lufthansa and Air China. In 1989, the two airline firms created Ameco Beijing which was an aircraft-maintenance joint venture, according to the WSJ. Majority or 60 per cent of the partnership was controlled by Air China, while Lufthansa owned the rest. The first ever code-sharing agreement between the German and Chinese was signed in 2000.
Reuters reported Lufthansa had been talking with Air China for months now. It wants to strengthen its position in Asia, where Dubai-based Emirates and Turkish Airlines have been expanding.
"European carriers are seeking stronger ties into growth markets like China to offset shrinking European business," investment research portal Seeking Alpha said. "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 has existing revenue-sharing joint ventures with Air Canada, Japan's ANA Holdings and U.S.-based United Continental Holdings.
To report problems or to leave feedback about this article, e-mail:
To contact the editor, e-mail:
Most Popular Slideshows
- Flight MH17 Attack: Russians Claim 'Putin A Terrorist,' Memorial at Dutch Embassy Overflows [PHOTOS]
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- Ellen DeGeneres Caught Cheating with Mutual Friend Before Portia de Rossi’s Rehab – Reports [PHOTOS]
- Selena Gomez Turns 22 Today, Celebrates Early without Justin Bieber: Top 12 Interesting Facts About the Singer [SEE PHOTOS]
Join the Conversation
- China Military PLA Drills Affect Flights, Hundreds Cancelled
- Malaysia Airlines MH17: EU Feared Won't Ever Enforce Sanctions on Russia; All Talk, No Force
- Health Canada Orders Labeling of Mechanically Tenderized Beef Meat
- Embattled Malaysia Airlines Could Run Out of Cash 2015; Diverts Plane Over Another War Zone After MH17 Crash
- Samsung Galaxy Note 4 Apps Leak Online, Five Fresh Features to Expect from the Android Smartphone
- Moto 360 Price Speculations, Key Features, Strategic Release Date, Design: A Watch That is More Than Just Time
- Windows Phone 8.1 Update Rollout: 20 Nokia Lumia Phones Eligible and 13 New Features to be Added
- Google Nexus 8 Release Date Soon Along with 2 More HTC Android Tablets – Reports
- Three New Moto G Successors Spotted in FCC Document Dubbed Moto G2, Moto M and More --Reports
- iPad Air 2 Release Date Will Skip IGZO Panel; To Rollout with Super-Slim iPad Mini Air
- Upcoming iPad Mini 3 Could be 30% Thinner and Likely be Called iPad Mini Air; Apple Q3 Results Show 9% Decrease in iPad Sales