Lufthansa to Sell Thomas Cook?

Published: 12/12/06

German press reports over the past week have raised speculation that German airline Lufthansa is on the verge of selling its 50 percent stake in tour operator Thomas Cook to its partner in the venture: Karstadt.

The move comes amid speculation that the airline is keen to focus on its key aviation business with a possible takeover of one of its major airline rivals in 2007. Iberia and United Airlines are listed as possible targets for Lufthansa.The Thomas Cook brand, which is one of the best known travel companies in Europe has suffered a poor year, and more than 4000 staff are facing redundancies in 2007, with the axe expected to fall most heavily in the UK.

Thomas Cook is most famous for offering cheap flights to Spain, and in recent years has struggled to retain market share thanks to the rise of the low cost rivals such as Ryan Air.

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