The United Continental Holdings Inc (NYSE:UAL) Chief Expresses Solidarity with Lufthansa

The recent German Wings crash was a tragedy that took the lives of about 150 people on board. The United Continental Holdings Inc (NYSE:UAL) CEO, Jeff Smisek, has expressed the solidarity of UAL with Lufthansa, the parent airline of German Wings. The CEO also expressed support of his company in the tough times. The UAL Chief continued to say that this cruel act by an isolated individual is one that has shocked everyone. The letter was one that reflected on the relationship between the two airlines that goes back to 1997. It was when the two airlines, combined with three more, to form the worldwide Star Alliance.

Does this analyst foresee a long-term upside in UAL?

The Lufthansa Airlines had a clean flight record before this crash took place in the French Alps. The letter also included a few acknowledgments covering the safety standards of Lufthansa Airlines, amongst others. There was also an acknowledgment of the training and safety standards of the airlines. The letter would serve as some good news for the company since the Lufthansa Airlines recently faced criticism for letting a mentally unstable person pilot the plane. The reassurances by the United Continental Holdings Inc (NYSE:UAL) Chief can well help them fight these waves of criticism.

The two airlines have been in business with each other for quite a while now. They share joint ventures and business partnerships for flights between the continents of Europe and North America. They are amongst the five founding members of the Star Alliance frequent flier group, which now has up to 27 member airlines. The organization comprises of airlines from around the globe. Current members include: Singapore Airlines, United Airlines, Lufthansa Airlines, Adria Airways, Aegean Airlines, Air Canada, Air China, Air India, and others. It is believed that the co-pilot deliberately crashed the plane after locking the Captain out of the cockpit.

About the Author

Stinson is US Markets Daily’s Senior Producer for News & Public Affairs.

Leave A Response