EU Ends Feeder Traffic Order, Lufthansa Triumphs
The European Commission has closed its interim antitrust proceedings against Lufthansa Group, effectively ending any obligation for the carrier to provide feeder traffic at Frankfurt International for rival Condor. The decision, announced on February 27, marks a significant win for Lufthansa as the regulator found that the legal conditions for ordering such interim measures were not met.
EU Commission’s Ruling
Earlier this year, the European Commission sent Lufthansa Group a formal statement of objections on January 15, arguing that reinstating Condor’s feed traffic was necessary to preserve healthy competition on the key transatlantic route between Frankfurt and New York. The move came in the wake of the special feed traffic arrangements between Condor and Lufthansa Group coming to an end in December 2024. The Commission’s preliminary conclusion was that interim measures were needed until the market could adjust, particularly in light of the broader investigation into potential competition restrictions linked to Lufthansa’s A++ joint venture with United Airlines and Air Canada.
However, after a thorough review of all available evidence, the Commission reversed its earlier stance. In its February 27 statement, it explained that not all legal conditions for ordering interim measures were met. This decision comes without prejudice to the ongoing main investigation into the joint venture’s compatibility with EU competition rules on transatlantic routes.
Lufthansa Group’s Response
A spokesperson for Lufthansa Group welcomed the decision, stating, “We are pleased with this decision by the EU Commission and see our position confirmed.” The spokesperson emphasized that the ruling allows Condor to continue booking Lufthansa Group flights on an industry-standard interlining basis. Lufthansa Group had previously argued that there was “neither a factual nor a legal basis” for reinstating Condor’s feed, and the Commission’s decision appears to back up this claim.
The ruling is significant for Lufthansa Group, which has been closely monitored as part of the broader antitrust scrutiny over its transatlantic operations. By not being forced to restore the feed arrangement, Lufthansa can maintain its current operational setup at Frankfurt International, which has been a critical hub for its network. The decision also helps to preserve the integrity of its ongoing collaboration with partners in the A++ joint venture.
Condor’s Perspective
While Lufthansa Group celebrates the outcome, Condor has expressed a cautious stance on the matter. A spokesperson for Condor commented, “As a matter of principle, Condor does not comment on ongoing proceedings. However, we assume that the proceedings currently being conducted by the German Federal Cartel Office and the European Commission will lead to positive decisions in favour of competition and, thus, for consumers.” The carrier is actively engaged in constructive talks with Lufthansa Group to reach an out-of-court settlement that would be mutually satisfactory. In the meantime, Condor is continuing to implement its own strategy by aligning its route network with the needs of its passengers.
Background and Legal Context
The controversy over feed traffic arrangements is rooted in previous regulatory actions. In 2022, the German Federal Cartel Office had prohibited Lufthansa’s termination of a special prorate agreement (SPA) that had historically granted Condor particular conditions for booking feeder flights within the Lufthansa network. However, subsequent rulings by the Düsseldorf Higher Regional Court and the Federal Court of Justice confirmed that the SPA had expired at the end of 2024, paving the way for the current developments.
This ruling by the European Commission is expected to have a stabilizing effect on the competitive landscape of transatlantic aviation. As the Commission continues its investigation into the A++ joint venture, industry observers will be keenly watching how these regulatory decisions impact market dynamics and passenger choice on one of the world’s most important air travel corridors. For now, Lufthansa Group can proceed without the burden of reinstating the contested feed traffic arrangement, marking a significant regulatory victory.
Related News : https://suspicious-zhukovsky.67-21-117-18.plesk.page/?s=Lufthansa
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com