Lufthansa has signed a co-operation deal with French regional carrier Air Littoral, opening the door towards a presence in France, one of the few major European markets without a Star Alliance home carrier.
The German flag carrier, and lead for Star in Europe, has agreed a deal that will see Air Littoral join its Miles & More frequent flyer programme. In addition, the two carriers are in discussions that could see Lufthansa provide a sales presence for the French carrier in markets where Air Littoral does not have its own outlets.
Air Littoral was affiliated to the Swissair group before its demise towards the end of 2001, which also brought an end to the French carrier's hopes for obtaining the final part of an €130 million ($133 million) refinancing package.
There is an ongoing legal wrangle between Swissair, effectively a shell company, and Air Littoral over payment of the last tranche of this deal.
However, Air Littoral is urgently seeking new investors, and received a boost in November when the French government agreed a bridging loan for the carrier, and also agreed a moratorium on its state debt until the end of 2003.
During the summer 2001, when Swissair was running into serious difficulties, sources close to Lufthansa said that the carrier had looked at Air Littoral but had decided against getting involved at that time. Air Littoral is well placed to provide feed to Frankfurt from the wealthy South of France.
Air Littoral has also signed a deal with Royal Air Maroc that will see the two carriers codeshare on flights between Montpellier and Casablanca. Codeshares form a key part of the carrier's survival strategy, and it has also signed agreements with Spanair, Air Algerie and Air One. The latter is a partner of Lufthansa in Italy.
COLIN BAKER LONDON
Source: Airline Business
