Lufthansa announced Sunday a takeover plan to acquire Swiss International Air Lines, saying the offer is to be made based on Swiss’s average recent trading stock price. The deal is to be approved by principal Swiss shareholders, including the nation’s government and UBS and Credit Suisse, two largest Swiss banks.

Lufthansa said in a statement that "the jointly developed business model aims at providing a concentration of the strengths of both airlines, while retaining the independence of Swiss to the extent possible." The drive for consolidation in the airline industry is now strong for all kinds of carriers, including both strong performers like Lufthansa and money-losers like Swiss. Swiss, however, is concerned about retaining independence after the alliance and seeks to continue its policy of cost-cutting and loss reduction. "We must first manage to get in the black before considering an alliance," said the airline’s chief executive, Christoph Franz,last week in Zurich. "Alliance-building questions will only arise when we show we are in a position to determine our own fate."