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Lufthansa chief hints at more business deals with partner, Cathay Pacific

LUTHANSA has called Cathay Pacific Airways the "perfect" partner, with the airline's chief executive Carsten Spohr hinting at more opportunities for business deals with Hong Kong's flagship carrier.

Lufthansa talked up its expanded relationship with Cathay Pacific on air freight services, with Mr Spohr saying the tie up between the pair was just the beginning.

Mr Spohr, who was attending a gathering of airline executives in the Mexican resort city of Cancun, said his airline's ties to Cathay Pacific would become more important as it was similar to one with the Hong Kong carrier's major shareholder Air China, reported the South China Morning Post.

"Cathay Pacific is the perfect fit for Lufthansa in many ways. It is an airline focused on premium, it is focused on sustainability, and not just around for one or two years," Mr Spohr was quoted as saying, on the sidelines of the aviation summit.

"We are very close to Air China with our joint venture, obviously there is a link between Cathay and Air China as well, so we are establishing more of a trilateral relationship," he said.

Cathay Pacific and Lufthansa initially struck a worldwide agreement to cooperate on cargo flights between Asia and Europe, which led to cooperation on flights between Europe, Hong Kong and Australia.

The deal has provided a boost to Cathay Pacific's air cargo business, and has given the airline more access to Germany and Eastern Europe. As for the German carrier and subsidiaries Swiss and Austrian Airlines, they have gained improved access to customers in Hong Kong and the Australian market.

Lufthansa, in reference to the current Cathay Pacific "codeshare" relationship on passenger flights, said the current deal was heading in the right direction to a point later on where both airlines could force a closer commercial pact.

"There are hurdles to do that, anti-trust issues, and other restrictions, but yes we believe the joint venture [on passenger flights] is the crown of any partnership," Mr Spohr added.