Lufthansa buys the remaining 55% of Brussels Airlines

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AirOpinion
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Re: Lufthansa buys the remaining 55% of Brussels Airlines

Post by AirOpinion » 15 Dec 2016, 12:31

I would like to share this view. In my opinion this looks more like a friendly take over, rather than a hostile takeover. Furthermore I see oppurtunities rather than restictions for the current Brussels Airlines. Synergy is not always a bad thing, it can also lead to interesting benefits.
Inquirer wrote:It was a press conference about a corporate take-over, so those enthousiasts hoping to hear news about planes, destinations, etc will indeed not have learnt much, but otherwise the purpose was well served, I should say?

Okay, those who have been predicting Brussels Airlines would be renamed and (the intercontinental) routes moved over to Germany will not understand what is going on, because it indeed doesn't sound anyway like that, at present, to me.

The interesting things I noticed:

1- Sitting next to eachother, it's made clear it's an amical take-over
2- Lufthansa forgoes the outstanding loan and converts it into an investment (?)
3- The name is not going to become Eurowings: Belgians want a distinctively local touch and Lufthansa is respecting that, just like at Swiss and Austrian (dixit Spohr), for as long as the local Belgian management feels it's somehow useful.
4- While commercially remaining distinct, Brussels Airlines' operations will as much as possible be integrated into those of Eurowings to make full benefit of a bigger platform.
5- Davignon mentioned it's better to be 30% of Eurowings, than it is to be just 5% of Lufthansa: expect Eurowings to become partly Brussels Airlines too, according to Spohr.
6- the Eurowings CEO mentions he's not going to start any base or commercial initiative in BRU: Lufthansa now has Brussels Airlines to cover that market.
7- the €600M is the price of the change of planes for intercontinental routes, which will be signed next year to replace the current ones, the cost of which will have to be sponsored by Lufthansa.
8- the hybrid model is the future: purely low cost carriers as well as purely legacy carriers are going to have to adapt to that and so having to work together their 2 brands currently covering that market is very similar ways will create a win-win for everybody, not just the two brands. (again, dixit Spohr)

The practical day-to-day implications about all of this will become clear over the next months and years of course, so that will be most interesting to keep watching for sure: I'd say that based on these foundations however, BRU has succeeded in keeping it's home airline serving both Europe and the rest of the world, with a special focus on Africa, as 'we should not let others connect us, we should connect ourselves to Europe and the world' (can't remember who it was who said that, but it sure sounded good).
Having a home based airline which is part of the biggest aviation group in Europe, that's a big step forward for the airport in fact, when it comes to long term commercial stability and thus infrastructural planning.

Now, let's see if they can indeed also succeed in getting Eurowings to move (part of) their intercontinental routes which suffer from a lack of quality feed over from Köln to Brussels, like I have always regarded as a good idea, and which you can read is a possibility in between the lines. :)

b720
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Re: Lufthansa buys the remaining 55% of Brussels Airlines

Post by b720 » 15 Dec 2016, 12:49

It seems to me that SN will eventually be fully integrated into EUROWINGS.

OO-ITR
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Re: Lufthansa buys the remaining 55% of Brussels Airlines

Post by OO-ITR » 15 Dec 2016, 12:55

b720 wrote:It seems to me that SN will eventually be fully integrated into EUROWINGS.
no SN will operate under the Eurowings umbrella, that is what is written in the press release....

The brand ‘Brussels Airlines’ will be complemented by the claim “Member of the Eurowings Group”. The common goal of Lufthansa and Brussels Airlines is to further strengthen the market position in the Belgian Airline market.

Thomaaas
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Re: Lufthansa buys the remaining 55% of Brussels Airlines

Post by Thomaaas » 15 Dec 2016, 13:10

Boavida wrote:It is very clear that LH doesn't value the brand 'Brussels Airlines'. Otherwise they would say "it's a strong brand and we will not change the brand in the future". Full stop. But they don't say this. They talk about "a brand" including a "Belgian touch" and to "develop it further".

So when we read between the lines:

- the Brussels Airlines brand is going eventually
- they want to keep a link to Belgium in the name
- they want to develop it further - in agreement with Belgian management
- they have an idea to work on

Do you see what I see? There's only one name that fits all the criteria...

Image

;)
For crying out loud, let it go. Sabena will not happen. It might bring back some good memories to av geeks, but for most people it brings back memories of bankrupcy, job loss, the Swiss screwing the Belgians over. I'm 99% sure Sabena will not hapen (although I could be wrong, hence the 99%).

louise1307
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Re: Lufthansa buys the remaining 55% of Brussels Airlines

Post by louise1307 » 15 Dec 2016, 13:16

And what about the pilots having CDD with SN? Any hope of future for them?

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Conti764
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Re: Lufthansa buys the remaining 55% of Brussels Airlines

Post by Conti764 » 15 Dec 2016, 13:19

So SN will operate under the Eurowings umbrella. Due to cost savings I assume. So, in the future, might we also expect LX and OS under that umbrella? Maybe SN is a test case for the rest of the LH Group, except LH itself maybe...

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Yuqu12
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Re: Lufthansa buys the remaining 55% of Brussels Airlines

Post by Yuqu12 » 15 Dec 2016, 13:33

Is this an option? All SN-flights become EW-flights carried out by SN? Sometimes you see ar BRU EW-flights carried out by Germanwings.

OO-ITR
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Re: Lufthansa buys the remaining 55% of Brussels Airlines

Post by OO-ITR » 15 Dec 2016, 13:35

Conti764 wrote:So SN will operate under the Eurowings umbrella. Due to cost savings I assume. So, in the future, might we also expect LX and OS under that umbrella? Maybe SN is a test case for the rest of the LH Group, except LH itself maybe...
OS already started flying under Eurowings with an OS crew

b720
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Re: Lufthansa buys the remaining 55% of Brussels Airlines

Post by b720 » 15 Dec 2016, 14:01

Swiss is the goose that lays the golden egg. I don't see them under the umbrella of Eurowings, except maybe for their GVA operations?

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Re: Lufthansa buys the remaining 55% of Brussels Airlines

Post by sean1982 » 15 Dec 2016, 14:15

OO-ITR wrote:
sean1982 wrote:
OO-ITR wrote:
Indeed why don't people have the patience to wait till tomorrow before spreading different Apocalypse Now scenario's...
I waited .... same result
lol well one could not expect another answer from you.
But where exactly did you hear an apocalypse now scenario in the press conference???
About moving the BRU hub to FRA/MUC? About changing the complete fleet to Eurowings?
I have listened carefully to Mr. Spohr and the rest but fail to have heard something like that.

I have never said that BRU hub would move to FRA/MUC. What I have said is that a full integration into eurowings is unstoppable. Slowly, bit by bit, back office jobs in BRU will be removed. Why have 2 flightplanning departments when you can do it with 1. Why have two ops control centers when you can do it with one ... etc, etc. Even if the name doesnt change (which I very much doubt otherwise there would have been hard garantuees. I dont fall for the promotional "we'll keep the belgian touch" talk from LH. If in 2 years you give a free piece of chocolate they can say: we kept the touch") it would be eurowings in all but a name. The so called 600m€ investment is also "een scheet in een fles". The lease of the A330's is up and the aircraft are at the end of their life. It was invest or lose half of what has kept SN alive for so long: the african network. Apocalypse now? No .... good news? Far from

brabel
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Re: Lufthansa buys the remaining 55% of Brussels Airlines

Post by brabel » 15 Dec 2016, 14:53

In some articles we can read that LH plans to make BRU the hub for sub-Sahara Africa.
Does this open new opportunities for SN? e.g. taking back Nairobi, going to South-Africa, opening Lagos and Libreville, ...?
Or am I speculating too much...

Thomaaas
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Re: Lufthansa buys the remaining 55% of Brussels Airlines

Post by Thomaaas » 15 Dec 2016, 15:03

brabel wrote:In some articles we can read that LH plans to make BRU the hub for sub-Sahara Africa.
Does this open new opportunities for SN? e.g. taking back Nairobi, going to South-Africa, opening Lagos and Libreville, ...?
Or am I speculating too much...
That's how I interpreted the sub-sahara hub thing as well. Kenya, Tanzania, Nigeria and South Africa should be introduced in the long-term if they really want to make BRU the sub-sahara hub.

Inquirer
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Re: Lufthansa buys the remaining 55% of Brussels Airlines

Post by Inquirer » 15 Dec 2016, 15:06

I don't share your pessimism, Sean.

Without a solvent shareholder, there was no credible chance for them to ever come up with a meaningful project regarding fleet renewal or anything like that, (which is why it got pushed ever further out in time too, IMHO), but now financing is no longer a major problem, so that's a major step forward: as you know all too well I am sure, successfully securing financing is the all important first step from daydream to reality for any project.

By having secured access to meaningful financing for their future growth, the long term sustainability of their operations in Brussels is far better guaranteed of course, which is excellent news not only for the thousands of people working for them, but also for the airport and indeed our country as a whole!

Whatever the name is they operate under in the long term, who cares, frankly?
What matters to me is that there's a sizeable airline willing to operate a nice and ever growing network at BRU, employing thousands of people here directly, all while the airport can benefit from it to support thousands of more jobs indirectly! That's what basically all airlines in the world toot in their PR whenever they base a single new plane somewhere, or open up a few new routes with it, remember?

And the airline doing that is Belgian born, Belgian grown, Belgian anchored and Belgian run, so what's the problem exactly? That its sole shareholder is German? The current set of shareholders doesn't look very Belgian either in fact: 45% German, 15% British, the rest French or Dutch banks and service providers, for the simple reason that when it comes to risk sharing, Belgians are all too often looking the other side when they have the opportunity.

Let's see what the future brings: the opportunities are widespread and they have just become much easier to grasp now, thanks to the money Lufthansa can provide them with if it makes economic sense to do so, so things haven't looked as good for them in a long time, I'd say.
Put yourself 6 months back in time, and think again.

b720
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Re: Lufthansa buys the remaining 55% of Brussels Airlines

Post by b720 » 15 Dec 2016, 16:02

Very well said, Inquirer..

Passenger
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Re: Lufthansa buys the remaining 55% of Brussels Airlines

Post by Passenger » 15 Dec 2016, 16:37

Someone asked for an update on new posts on the homepage about topics that are discussed here. Hence:

https://www.aviation24.be/airlines/brussel ... -together/

and

https://www.aviation24.be/airlines/lufthan ... irholding/

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luchtzak
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Re: Lufthansa buys the remaining 55% of Brussels Airlines

Post by luchtzak » 15 Dec 2016, 17:06

Passenger wrote:Someone asked for an update on new posts on the homepage about topics that are discussed here. Hence:

https://www.aviation24.be/airlines/brussel ... -together/

and

https://www.aviation24.be/airlines/lufthan ... irholding/
And https://www.aviation24.be/subscribe-daily-newsletter/

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babolat-blast
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Re: Lufthansa buys the remaining 55% of Brussels Airlines

Post by babolat-blast » 15 Dec 2016, 18:21

Gustin is a guest tonight in Ter Zake on Canvas, 8.05pm. Maybe he'll get some tough questions ;)

sn-remember
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Re: Lufthansa buys the remaining 55% of Brussels Airlines

Post by sn-remember » 15 Dec 2016, 23:23

I was browsing through airliners.net to find some clues regarding sn's star alliance membership prospects under the (hostile?) EW takeover because this membership is so obviously vital to sn's l/h future operations and Bru future development.
Only post I found on that topic, I want to share with you (from poster blueflyer, currently the last contribution)
"Carsten Spohr seems dedicated to do almost anything to make the new Eurowings, his pet project, succeeds at almost any cost, but I don't think he'd dare to go as far as taking Brussels Airlines, or whatever the new entity's name is, out of Star Alliance. The alliance and the A++ joint venture bring massive benefits by funneling United, Air Canada, and to a lesser extent ANA and Thai passengers onto Brussels Airlines' flights to Africa. Taking away Star Alliance will have an immediate and very detrimental effect on Brussels Airlines' African network. Even Spohr would find it difficult to explain to his board why he gutted one of the most profitable elements of their new acquisition."
From http://www.airliners.net/forum/viewtopi ... &t=1343673

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b.lufthansa
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Re: Lufthansa buys the remaining 55% of Brussels Airlines

Post by b.lufthansa » 16 Dec 2016, 01:05

Blauwe vakbond;

Bijzondere ondernemingsraad Brussels Airlines

Lufthansa / Eurowings Groep zal vanaf 1 januari Brussels Airlines overnemen.

Er is een overeenkomst om de continuïteit van het bedrijf te verzekeren. Tevens zal er vandaag een investeringsplan aangekondigd worden.

Het investeringsplan zal vooral gaan over de vernieuwing en de uitbreiding van de lange afstandsvloot. Op termijn zou Brussel de Afrika-Hub van de groep moeten worden.

Dit is natuurlijk belangrijk voor de tewerkstelling. Het zal de komende de jaren voor een versterking/uitbouw van de werkgelegenheid zorgen.

Toch maken we ons op korte termijn zorgen over de tewerkstelling van de ondersteunende diensten. De komende weken zullen wij als Liberale Vakbond hierover meer duidelijkheid vragen.

Brussels Airlines zou onder de groep Eurowings vallen, maar wel met een overeenkomst dat er het eerste jaar geen aanpassing komt in de manier van werken van Brussels Airlines. Nadien zou dit in onderling overleg gebeuren.

Als Liberale Vakbond beseffen we dat deze overname noodzakelijk is voor de verdere ontwikkeling van het bedrijf. Wij hopen dat Brussels Airlines een volwaardige partner zal worden binnen de Eurowings Groep.

De Liberale Vakbond ziet in dit verhaal kansen tot groei, zeker in combinatie met het project van de luchthaven 2040.

Deze plannen hebben wel pas kans op slagen als er ook een lange termijn visie komt van de verschillende regeringen.

Sinds de verhuis van de DHL-Hub zijn wij als Liberale Vakbond vragende partij voor dergelijke lange termijn visie.

Het uitblijven van deze visie heeft immers op Brussels Airport al heel wat jobs gekost.

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b.lufthansa
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Re: Lufthansa buys the remaining 55% of Brussels Airlines

Post by b.lufthansa » 16 Dec 2016, 01:06

Conseil d'entreprise exceptionnel de Brussels Airlines

Lufthansa / Eurowings Group acquiert totalement Brussels Airlines à partir du 1er janvier

Il y a un accord pour assurer la pérennité de l'entreprise. Voilà pourquoi un plan d'investissement a était dévoilé aujourd'hui.

L'investissement se concentrera sur le renouvellement et l'expansion de la flotte long-courrier. Et a long terme Bruxelles deviendra le Hub africain du groupe.

Ceci est évidemment important pour renforcer garantir et fournir de l'emploi pour les prochaines années.

Pourtant, nous nous inquiétons à court terme sur le maintien de l'emploi dans certains services. Dans les semaines à venir, nous en tant que Syndicat libéral demanderons plus se clarté par rapport a cela.

Brussels Airlines sera une entité d'Eurowings, mais avec un accord pour que la première année, aucuns changements prédominant ne viendrais affecté la manière de travailler de Brussels Airlines. Ensuite, cela se pourrait se produire.

Comme Syndicat libéral, nous nous rendons compte que cette acquisition est nécessaire pour le développement futur de la société. Nous espérons que Brussels Airlines deviendra un partenaire fort et à part entière du groupe dans l'entité Eurowings.

Votre Syndicat libéral voit dans ce rachat des opportunités de croissance, en particulier en combinaison avec le projet de développement de l'aéroport a l'horizon de 2040.

Cette vision a long terme ne pourra toutefois réussir que s'il y a une réelle volonté des différents gouvernements.

Depuis la délocalisation du Hub de DHL, nous, en tant que Syndicat libéral demandons une telle projection pour le futur.

Malheureusement le manque de vision a long termes venant de certaines institutions a déjà coûté beaucoup d'emplois a l'aéroport de Bruxelles

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