Monday, 10 March 2008:A merger between Lufthansa subsidiary, Germanwings, and TUI could be close to finalisation, sources close to the deal have said.
Michael Frenzel, TUI CEO, and Wolfgang Mayrhuber, Lufthansa CEO, has held recent meetings where key points have been agreed upon, claim local paper, Financial Times Deutschland.
As it stands Germanwings is a subsidiary of regional carrier Eurowings, which is 49% owned by Lufthansa and 51% owned by Albrecht Knauf, a German entrepreneur.
While TUIfly the TUI Travel subsidiary of TUI Travel Plc, who is 51% owned by TUI.
It is understood the new agreement will see Lufthansa and TUI each hold 40% of the new merged carrier and the remaining 20% to be held by Albrecht Knauf.
We are talking to each other and it is progressing well, said Mr Frenzel to the paper.
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