Lufthansa is considering increasing its level of cooperation with Star Alliance codeshare partner Air China, with a joint venture which would allow revenue-sharing on Asian routes by selling tickets for each other's flights.
Lufthansa cites increasing competition from Middle East carriers as the principal motivation for the deal.
Lufthansa CEO Carsten Spohr aims to sign a deal with Air China during German Chancellor Angela Merkel's state visit to Beijing this week.
The German flag carrier has been in talks with Air China for months as it seeks to strengthen its position in Asia. The airline has other joint ventures in place with carriers such as Japan’s ANA, but the deal is against a backdrop of recent poor performance for Lufthansa, which was one of several EU carriers that issued profit warnings last month.