Brussels Airlines chief optimistic on Lufthansa deal

Gustin expects EC approval

Bernard Gustin, ceo of Brussels Airlines, said he expected the EC to approve its take over deal by Lufthansa.

Mr Gustin told Reuters:  "We are preparing ourselves that a statement would be issued in the next coming days."

The Commission said it was due to make its ruling by July 1.

Under the deal, the German carrier will buy a 45% stake in Brussels Airlines for €65m.

Lufthansa will have the option to buy the remaining 55% of shares form the stakeholders which include the Virgin Group by 2011.

But the EC launched an "in-depth investigation" into the planned deal saying it could "significantly impede effective competition."

It also said the deal raised "serious doubts" on whether it complied with the EC's Single Market regarding passenger routes between Belgium and Germany and Belgium and Switzerland.

The initial investigation into the proposed deal by the EC said it would create a monopoly on three routes.

These were from Brussels to Frankfurt, Hamburg and Munich.

It would also "substantially reduce" competition on routes from Brussels and Berlin.

The EC was also concerned about competition on two other routes, Brussels to Zurich and Brussels to Geneva.

Mr Gustin also told Reuters that he does not expect his airline to make a profit this year.

"2009 will be a very difficult year. I do not believe that we will be profitable but that still remains our target," he said.

The carrier made a loss of €12m last year.

http://ec.europa.eu/   www.lufthansa.com   www.brusselsairlines.com