Lufthansa and Air China Agree For Joint Venture

Lufthansa and Air China Agree For Joint Venture

Lufthansa and Air China Agree For Joint Venture. German & Europe largest airlines, Lufthansa as plans to sign a joint venture agreement with Air China later this month, rounding off for more than two years of negotiations.

Lufthansa CEO Carsten Spohr, will travel to Beijing for a ceremony with the flag carrier of China on September 20 2016, according to one of the people who are involved in the deal and declined to be identified before it is formally announced.

The companies signed an agreement in principle in July 2014 to work towards a joint venture that allows them to share revenues on certain routes by selling tickets for flights of each.

Such arrangements allow airlines to work together on routes and prices, while leaving aside foreign ownership rules that prevent them from melting.
"We are in the final straight. We are confident that we will have this squared away soon," a Lufthansa spokes person said, although he declined to say when an agreement was signed. A spokesman for Air China did not respond for comment.

As Lufthansa signed the agreement in principle in July 2014. The carrier said it hoped the deal would improve its position in China. World fastest growing on aviation market. Spohr said at the time it could take until 2016 before the joint venture was at full capacity due to the time required for antitrust approval. However, picture shown of Air China Airbus A330-200 alongside many fleet of Lufthansa at gate apron.