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Lufthansa eyes SAS, Brussels to grow Eurowings - sources

Reuters - UK Focus

By Peter Maushagen

FRANKFURT, April 13 (Reuters) - Lufthansa is in talks with the owners of Scandinavian carrier SAS (LSE: 0O1W.L - news) and Brussels Airlines as it seeks to expand its network of airlines and add to its Eurowings low-cost platform, according to people close to Lufthansa.

Two sources said on Wednesday that the German carrier had been in talks with the owners of SAS since the autumn.

The talks could result in Lufthansa taking a stake in SAS - half owned by Denmark, Norway and Sweden - a cooperation, or some other kind of partnership, they said.

Lufthansa said it has been a partner with SAS since airline cooperation group Star Alliance was founded and as a result is in continuous talks with the Scandinavian carrier. "Anything else is speculation," a Lufthansa spokesman said.

SAS declined comment.

($1 = 0.8800 euros) (Additional reporting by Arno Schuetze, Victoria Bryan and Mia Shanley; Writing by Maria Sheahan; Editing by Jonathan Gould)