Turkish PM favours LHA, THY tie-up

Turkish Prime Minister Recep Tayyip Erdogan has “responded positively” to a proposal to strengthen ties between Germany's national carrier Lufthansa and Turkey's national airline Turkish Airlines.

German Chancellor Angela Merkel suggested the two carriers establish a joint management agreement, according to Anadolu Agency news.

The proposal is aimed at preventing competition from Gulf rivals and to contest other European airlines that already have Middle Eastern partnerships.

The joint management proposal may see each airline purchase shares in one another, yet this may be complicated by European Union ownership rules, according to the Financial Times Deutschland.

“A merger would be nonsense for Turkish right now”, although “a strong code-share makes strategic sense,” Oddo & Cie analyst Yan Derocles said.

Sourced: etravelblackboardasia