- Title: Lufthansa, Air China sign route joint venture deal
- Date: 20th September 2016
- Summary: SONG HANDING OVER AIR CHINA AIRPLANE MODEL TO SPOHR MEDIA SEATED SPOHR PRESENTING LUFTHANSA AIRPLANE MODEL TO SONG
- Embargoed: 5th October 2016 12:06
- Keywords: Lufthansa Air China route sharing
- Location: BEIJING, CHINA
- City: BEIJING, CHINA
- Country: China
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA00550DCU4T
- Aspect Ratio: 16:9
- Story Text: Lufthansa signed a route sharing deal with China's flagship carrier Air China on Tuesday (September 20), capping off two years of talks that will boost Germany's biggest airline's access to the world's fastest growing aviation market.
The deal, which began with the signing of an accord in July 2014, will see the companies share revenue by allowing them to sell each other's tickets on some routes. It represents the closest agreement such carriers can enter short of a full-scale merger.
The German airline has sought closer ties with Air China to improve its position in the Chinese aviation market as European traffic slows and to stem competition from fast-growing Persian Gulf carriers on lucrative long-haul routes.
The deal, which will also include Lufthansa's units Austrian Airlines and Swiss Air, will initially cover routes from China to cities including Frankfurt, Vienna and Zurich and be eventually expanded to all routes between China and Europe operated by the two carriers.
It will start in the summer of 2017 and no cash investment was committed to the deal. - Copyright Holder: REUTERS
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