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Wednesday, 1 February 2017

Lufthansa, Etihad Deepen Ties With Catering, Maintenance Pacts - Bloomberg

Lufthansa, Etihad Deepen Ties With Catering, Maintenance Pacts - Bloomberg:

"Long-time adversaries Deutsche Lufthansa AG and Etihad Airways PJSC announced deals covering catering and aircraft maintenance and said the agreements could act as a springboard to a broader alliance. While the accords amount to contract wins for Lufthansa worth more than 200 million euros ($216 million), the carriers said they’re targeting further tie-ups in cargo, procurement, information technology and new code-share routes, and could form a full joint venture, the closest relationship available to airlines from different regions. The German carrier said its also open to cooperation with Alitalia SpA, in which Etihad has a 49 percent stake. The companies are drawing closer as Lufthansa struggles to cut costs and add low-cost flights amid union opposition, just as Abu Dhabi-based Etihad grapples with losses from European investments. James Hogan, who leads the Mideast group, said Wednesday’s announcements mark a “major step” and that closer ties to the German carrier would bring vital “scale,” while his counterpart Carsten Spohr said talks are already underway on a deeper deal."



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