A difficult partnership?

Europe's airlines are in the midst of a crisis. Following in the footsteps of debt-ridden Austrian Airlines and Italy's Alitalia, Luxembourg is now also seeking a partner for its state-owned airline Luxair. But a partnership with Germany's Lufthansa could lead to conflict, the daily Luxemburger points out. "The name Lufthansa must ... bring back unpleasant memories for the Luxembourger cargo airline. After all, it was the German airline that got the international air cargo rivals - including Cargolux - into trouble with the competition authorities in Europe and the US for coordinating their fuel surcharge prices. The [German] company may have acted appropriately in its own interest, but Lufthansa did considerable damage to Cargolux. This relationship would have to be resolved in the negotiations."

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