LUFTHANSA BUYS STAKE IN BRITISH MIDLAND
Deutsche Lufthansa AG has agreed to buy a 20-percent stake in U.K.
airline British Midland Airways from Scandinavian Airlines System for $148 million.
British Midland will join the Star Alliance of carriers, which includes
Lufthansa, SAS and United Airlines. SAS still owns 20 percent of the
carrier.
British Midland is an important catch for the Star carriers because the
U.K. airline controls takeoff and landing rights at crowded Heathrow
airport. Heathrow is the primary stronghold of British Airways, a key
member of the oneworld alliance with American Airlines.