What we knew would happen for weeks has become official.   Lufthansa has entered a Letter of Intent with Air Berlin to assume a wet-lease for 40 Air Berlin aircraft, complete with Air Berlin crews to operate the flights.   The aircraft will enter service on March 26, 2017, coinciding with the beginning of Lufthansa’s Summer timetable.  35 of the aircraft will be repainted to the Eurowings livery, while the remain 5 will fly under Austrian’s colors.   Specifically, the lease involves 29 Airbus 320 and 11 Airbus A319 aircraft.

The decision was made after Lufthansa approached Air Berlin with an offer to help reduce some of the stress that Air Berlin is under due to mounting losses.    Of course LH was not completely altruistic with the offer since there would be a substantial benefit to Eurowings, both in the growth of the fleet and the reduction of competition in the German LCC market.

Lufthansa will operate the aircraft on existing Air Berlin routes except those that serve Dusseldorf or Berlin.  Air Berlin will continue to operate out these major hubs.  However I do expect that a few tweaks will be made to the timetable to take into account existing routes already being flown by Eurowings.

Under wet lease agreements, the operating airline pays ‘rent’ for the aircraft and assumes all other responsibilities for the aircraft including maintenance etc.   Any profits or losses remain with the airline leasing the aircraft, obviously in this case it is Lufthansa.

The ‘Letter of Intent’ announcement came from the Supervisory Board of the Lufthansa Group.   The board held a regularly scheduled meeting on Wednesday (28 September) to discuss various proposals and strategy initiatives.   Another major announcement that came from the Board was the approval for the Lufthansa Group to purchase the remaining 55 percent stake that it did not already own in Brussels Airlines.