German Airline Lufthansa Buys Stake in Frankfurt Airport Operator

BERLIN--German airline Lufthansa AG said Friday it has bought nearly 5 percent of Fraport AG, the operator of Frankfurt airport, for 170 million (US$206 million).

Lufthansa said it bought the 4.95 percent stake in order to underpin its position in Frankfurt, the airline's main hub and continental Europe's biggest international airport.

It said it planned to increase the stake to 5 percent "in the short term" to bolster its influence on the airport's development and improve its services.

"Our stake in the airport operator will intensify our partnership with Fraport and lastingly strengthen our airline's position at the major Frankfurt hub," Lufthansa Chairman and CEO Wolfgang Mayrhuber said in a statement.

Lufthansa was hoping to replicate the success of its investment in a new terminal at Munich's international airport, Mayrhuber said.

Lufthansa shares fell 0.1 percent to 10.97 (US$9.04) on the Frankfurt stock exchange. Fraport shares rose 1.5 percent to 40.60 (US$49.28).

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