As of 2018, Brussels Airlines will be fully integrated into the Lufthansa Group and join the Eurowings Group.
The unique characteristics of Brussels Airlines, including its attractive Brussels market, its well established Africa network and its advantageous cost structure which has allowed the leading Belgian airline to successfully compete with the tough low-cost competition in the Belgian market, will further strengthen the Lufthansa Group and Eurowings Group market position.
Today we start a new chapter, reinforcing the strategic position of Brussels together with Lufthansa. https://t.co/iaKg7vFil9
— Brussels Airlines (@FlyingBrussels) December 15, 2016
After the agreement of Lufthansa and the shareholders of SN Airholding on the modalities of the complete take-over, Deutsche Lufthansa AG’s Executive Board decided yesterday to exercise the call option for the outstanding 55 percent of the shares. The call option comes into effect by 31 December 2016. The closing of the transaction will happen by the beginning of January 2017. The price for the take-over of the remaining 55 percent of the shares had already been part of the agreement for the call option in 2008. The price for the acquisition of the remaining 55 percent of the shares is 2.6 million euro, which will be transferred to a consortium of 30 shareholders.
After the acquisition, Brussels Airlines will operate its 23 long-haul destinations as well as 79 destinations in Europe under the umbrella of the Eurowings Group. The brand Brussels Airlines will over time 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 aviation market.
Brussels Airlines’ current fleet harmonization towards an Airbus A320 family fleet for the European network will be continued. With its fleet of 42 short- and medium-haul aircraft, including two in wetlease, and nine A330 long-haul aircraft, Brussels Airlines has significantly increased its passenger numbers. Between 2013 and 2015, this number has increased by 30% to a total of 7.5 million passengers. Medium-term investments are planned to further improve the fleet efficiency and increase the capacity on the short- and long-haul networks.
In the past three years, Brussels Airlines reduced its overall costs by 15% and established efficient sustainable structures. For the fiscal year of 2015, the leading Belgian airline generated an operating profit of 43.4 million euros. With the full integration of Brussels Airlines, synergies will add up to a mid-double digit million euro amount per year.