Richard Branson's Virgin Seeks Deal With Lufthansa

[Mike W]

Now, this is interesting. Imagine the repercussions of this on Airlines, Airports and Alliances Internationally if SRB gets his way. Although a long shot, it might even filter down to DJ and maybe a Star relationship?

http://www.theaustralian.news.com.au...-23349,00.html

David Robertson | October 30, 2008

VIRGIN Atlantic has proposed combining its operations with bmi, the British airline bought by Lufthansa for 400 million euro ($767 million), in a deal that could create a European super-carrier.

Lufthansa, the German national airline, now owns 80 per cent of bmi, the former British Midland, and is expected to make a bid for the remaining 20 per cent, which is owned by Scandinavian Airlines (SAS). SAS has put both the stake and itself up for sale.

Virgin Atlantic, the airline owned by Sir Richard Branson, responded to the purchase of bmi by offering to combine its own operations with bmi.

Virgin's offer was vague but is understood to include either buying bmi from Lufthansa or integrating operations across all three carriers in a partnership that would create Europe’s dominant airline.

Lufthansa has expressed no interest in selling bmi and is instead leading a wave of consolidation in the airline sector.

A tie-up with Virgin would allow the German carrier to use the better-known Virgin brand to expand internationally and at Heathrow in particular.

Lufthansa’s acquisition of bmi will make it the second-largest operator out of Heathrow, the world's busiest international airport, behind British Airways.

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