German Airline "Watching Developments Very Closely"

What's good for the French and the Dutch, could be good for the Germans, as well... at least when it comes to foreign interest in US domestic airline mergers.

Following in the steps of Air France/KLM -- which could reportedly have a stake in a merger between Delta Air Lines and Northwest Airlines, if such a deal comes to fruition -- Lufthansa is also contemplating an investment into a rumored joining of United Airlines and Continental Airlines, according to The Chicago Tribune.

And unlike much of the speculation regarding a Delta/NWA, or United/Continental, pairing... a Lufthansa official was even willing to go on record about the carrier's interest, albeit in a measured fashion.

"We are of course watching the developments in the market very closely, and have enjoyed a strong relationship with United Airlines as a key Star Alliance partner in the region," said Lufthansa's North American communications manager, Jennifer Urbaniak. "In general, any decisions regarding future investments take into account the synergies that could be realized on behalf of our passengers."

ANN has reported ad nauseum (literally, to the point of nausea -- a merger-weary Ed.) on the much-rumored, apparently-impending merger between Delta and Northwest. The boards of directors at both airlines met Wednesday to consider the move, and an official announcement is believed to be forthcoming.

Air France/KLM -- which partners with both Delta and Northwest in the SkyTeam alliance -- said in January it stood ready to offer strategic or financial backing, if needed, for a merger between the two domestic airlines, which if successful would create the world's largest carrier.

In the meantime, reports also surfaced United -- once considered a merger candidate for Delta, but all-but-shunned from those talks in recent weeks -- has made overtures to Houston-based Continental, in what could be the second-wave of "merger mania" to sweep US airlines this year.

Lufthansa's announcement follows the December 2007 announcement of its acquisition a 19 percent stake in low-cost carrier JetBlue Airways. That marked the German flag carrier's first-ever direct investment in a US airline... and few analysts believed it would be the last.

FMI: www.lufthansa.com, www.united.com, www.continental.com