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BY OUR AVIATION CORRESPONDENT
 6
July, 2005: Lufthansa, Germany's national airline and the third biggest in Europe, has received clearance from the European Union for its proposed acquisition of Swiss carrier Swiss International Airlines.
The US competition authorities have already given their okay for the acquisition. The two final clearances have cleared all hurdles for the German airline's takeover of the ailing Swiss airline. Swiss Air will now be integrated into the Deutsche Lufthansa group.
European Commission, the EU's executive arm said that its approval is conditional, upon the parties surrendering slots at Zurich and Frankfurt airports, among other concessions.
Swiss International Airlines was created after the collapse of Swissair in 2001. On March 22, 2005, Lufthansa signed a deal to take over the Swiss flier. The carrier is facing many financial problems.
Lufthansa has already received approvals from the German authorities as well as its shareholders its proposed Swiss Air acquisition.
The Lufthansa-Swiss Air partnership will help Lufthansa further strengthen and develop its position as a leading international network carrier, said a press release from the German airline. From the beginning of the 2005/06 winter schedules, all air passengers of both airlines will get an expanded global network of products and services. Members of Miles & More and Swiss TravelClub will be offered enhanced services and further benefits over the course of the summer.
"I welcome airline consolidation in Europe, but it should not lead to higher prices or reduced choice of carrier. The commitments given by Lufthansa ensure that competitors will be able to offer new services in competition with the merged company," EU's Competition Commissioner Neelie Kroes said.
Exults Wolfgang Mayrhuber, chairman of the executive board and CEO of Lufthansa: "This is a partnership for all our customers Lufthansa and SWISS deliver quality mobility to and from Europe. Following our successful public purchase offer and the plans to welcome SWISS to Star Alliance, these regulatory approvals mark a further milestone on our joint journey forward. And in just a few weeks’ time, the customers of our two airlines will be feeling the first benefits that our partnership will bring."
"The green light from Brussels and Washington gives us the opportunity to ensure the long-term future of the air transport connections that are so crucial to Switzerland and its economy," adds Christoph Franz, President and CEO of SWISS. "With Lufthansa and SWISS, we are seeing the team-up of two globally-reputed airlines with the same strong commitment to superior service and quality. Following today's approval, we can now offer our customers more destinations, better connections, integrated frequent flyer programmes, greater lounge access and much more besides."
BY OUR AVIATION CORRESPONDENT
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