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Lufthansa and Austrian Airlines form alliance

The European Commission in mid December gave the green light to airline carriers Lufthansa and Austrian Airlines who thereafter…

The European Commission in mid December gave the green light to airline carriers Lufthansa<.> and Austrian Airlines<.> who thereafter announced a new strategic alliance after winning the Commission`s backing. With more than seven months of negotiations, the two airline companies have agreed to introduce competition on routes between Germany and Austria. According to a report in the Financial Times, the decision to clear the deal, which is set to go under review by no later than 2007, the two operators will co-ordinate fares and schedules for flights all over the world. Following the announcement, both Lufthansa and Austrian Airlines said they jointly agreed to reduce fares on three routes.

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