Germany\u2019s cartel office opened an antitrust probe into Deutsche Lufthansa AG after leisure airline Condor complained about the termination of a commercial agreement between the carriers.<\/p>\n
The inquiry will focus on Lufthansa\u2019s decision to end a deal that allows Condor to market short flights from the larger carrier that feed into Condor\u2019s long-distance journeys, Kay Weidner, spokesman for the federal cartel office said.<\/p>\n
That agreement is due to be terminated on June 21, in the middle of the typically busy summer travel season. Condor filed a complaint this month saying that the move is an abuse of Lufthansa\u2019s dominant market position in the region.<\/p>\n
Andreas Mundt, president of Germany\u2019s cartel office, said in a statement that the body was trying to establish the facts of the case. He added that the probe was necessary to ensure competition in Germany\u2019s \u201calready highly-concentrated\u201d flight market.<\/p>\n
The spat between Lufthansa and its one-time subsidiary comes as the former pivots to long-haul tourism travel, for years Condor\u2019s niche. Lufthansa is launching a Eurowings Discover brand with which it hopes to grow in lower-cost leisure travel, a segment of the market that\u2019s expected to recover from the coronavirus downturn faster than business travel.<\/p>\n
A spokesperson for Lufthansa wasn\u2019t immediately available for comment.<\/p>\n
Condor said it welcomes the probe, saying Lufthansa is trying to extend its \u201cquasi monopolistic\u201d position on domestic and European flights into long-haul tourist routes.<\/p>\n
Looking into potential anti-competitive behavior is especially prudent since both companies received government aid, it said.<\/p>\n
\u201cTaxpayers\u2019 money should be used to help companies survive against the backdrop of the pandemic, but not to push other companies out of the market,\u201d Condor Chief Executive Officer Ralf Teckentrup said in a statement.<\/p>\n