Lufthansa may sell stake in LH Systems

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Lufthansa is apparently close to selling a majority share in its IT subsidiary, Lufthansa Systems.

Germany's Manager Magazin has reported that the airline is separately negotiating with USA-based IBM and India's Tata Group to sell a 51% stake in the Frankfurt-based company, and that the deal will soon be finalised.

Lufthansa declined to comment on the report but confirmed that the IT subsidiary is being restructured. As part of this process, it is considering a potential cooperation with an external partner, the airline added. Thus far, however, no decision has been made, it said.

Lufthansa Systems' revenues during the first six months in 2011 declined 0.7% to €289 million ($414 million) compared with the same period last year. Operating income shrank 25% from €8 million in the first half 2010 to €6 million this year.