Lufthansa talking to SAS, Brussels Airlines

Lufthansa is in talks with the owners of Scandinavian carrier SAS and Brussels Airlines to expand the number of destinations it flies to and grow its low-cost Eurowings business, people close to the German airline said. Two people said Lufthansa had been in talks with the owners of SAS since the autumn, which could lead to Lufthansa taking a stake in SAS - half owned by Denmark, Norway and Sweden - or some other kind of partnership, they said. "SAS could be docked onto budget platform Eurowings," one of the people said. Lufthansa launched Eurowings last year in a fresh attempt to crack the low-cost market and compete with the likes of Ryanair and easyJet. It has said it aims to use it to bundle various subsidiaries and brands. One of the sources also said it was "as good as certain" Lufthansa would present a deal to buy the 55% in Brussels Airlines it does not already own at a supervisory board meeting on April 27. People familiar with the industry said a full takeover of SAS by Lufthansa was unlikely, while taking a minority stake would potentially come with a board seat and direct influence on the Scandinavian company's strategy. "Lufthansa wants to build Eurowings, but it does not want to take on any restructuring risk," one of those people said.<br/>