Jet Airways’ code-sharing agreement with Brussels Airlines is likely to hit an air pocket should a proposed stake sale of the Belgian national carrier to German airline Lufthansa go ahead.
Carrier’s code-sharing pact with Brussels Airlines could come undone if Lufthansa buys into the latter
MUMBAI: Jet Airways’ code-sharing agreement with Brussels Airlines is likely to hit an air pocket should a proposed stake sale of the Belgian national carrier to German airline Lufthansa go ahead.
The code-sharing pact allowed Jet to leverage its hub operations in Europe by riding on the regional connectivity offered by Brussels Airlines.
Lufthansa has close ties with national carrier Air India and it is not clear if it would be keen to support Jet in Europe.
The German airline has been playing the role of a mentor to Air India, which has been invited to join Star Alliance, a global airline network of which Lufthansa is a prominent member. Lufthansa had also offered its assistance in finalising a European hub for Air India.
Reuters, quoting Belgian and German press, had reported earlier that Lufthansa was considering buying into Brussels Airlines. Contacted, Wolfgang Prock-Schauer, chief executive officer, Jet Airways, told DNA Money, “I would not like to comment until I know what is going on. Internationally, such matters differ on a case-to-case basis.”
A Lufthansa representative’s answers to queries did not shed any more light on the issue either. A statement from Brussels Airlines, while keeping the door open for a possible stake sale, sought to assert its autonomy, which could help guard Jet’s interest.
“A possible financial participation of a new shareholder could only be considered under the condition that the sustainable future, the identity and the autonomy of Brussels Airlines are guaranteed,” the carrier said in a statement.
The Belgian airline further said it was in talks with various partners to enter one of the world’s main commercial airline alliances. Analysts feel such a move by the European carrier would greatly benefit Jet.
An analyst with a foreign brokerage who did not want to be named said, “We will have to wait and watch. It would all depend on the kind of agreement the two airlines reach regarding the stake sale. You forge an alliance to take advantage of each other’s strengths. If they feel that Jet could add to the strengths, they could work even more closely.”
Jet does not have a code-sharing agreement with Lufthansa. But, it does have a pact by which members of Jet’s loyalty programme can redeem miles flown on the German carrier.
Jet Airways had announced the creation of its European hub in Brussels last year. The partnership with Brussels Airlines was meant to help it offer connectivity throughout Europe and Africa.
Brussels Airlines connects over 50 airports in Europe and also has 14 African destinations in its network.
Last year, there were reports that Jet was interested in picking up a stake in Brussels Airlines.
(With inputs from Reuters)
n_john@dnaindia.net
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