Lufthansa’s Germanwings airline and TUIfly are in talks about an alliance that could include a merger, sources familiar with the matter said on Wednesday.
The sources said talks were at an early stage, adding that Germanwings would seek operational control in any alliance with TUIfly.
Lufthansa, TUI and Germanwings declined to comment.
Travel giant TUI Travel , which is 51 percent owned by TUI, said in September it could sell TUIfly. TUI Travel is conducting a strategic review and is to detail its decisions by January.