Earlier I wrote about how German airline Condor will likely be slicing half a dozen transatlantic routes in the summertime of 2025. We’re now getting extra of a way of why that’s, and it’s very unhealthy information for airline competitors in German.
The sophisticated Condor & Lufthansa relationship
There’s a whole lot of historical past between Germany’s two largest airways, Lufthansa and Condor. When Condor was based again in 1955, Lufthansa was really a shareholder within the firm, and the airways cooperated intently. Lufthansa mainly seen Condor as its leisure companion.
Over time that modified, and within the early 2000s, Lufthansa bought its Condor shares to Thomas Prepare dinner. When Thomas Prepare dinner went out of enterprise, Condor in the end turned impartial.
It has been a extremely thrilling a number of years for Condor, because the airline has developed in an unbelievable approach. For instance, Condor has changed its outdated Boeing 767-300ERs with Airbus A330-900neos, providing a powerful passenger expertise. Moreover, the airline has more and more began competing extra instantly with Lufthansa in lengthy haul markets, flying between Frankfurt (FRA) and main cities in North America, starting from Los Angeles (LAX), to Miami (MIA), to New York (JFK).
Right here’s the factor, although — Condor is sort of reliant on Lufthansa. Frankfurt isn’t really an enormous market independently (particularly for a leisure airline!), however moderately the explanation it’s such an enormous aviation hub is due to the scale of Lufthansa’s presence there.
Up till now, Lufthansa has supplied feeder site visitors for Condor, at specifically negotiated costs. Condor largely fills its planes with passengers connecting to and from Lufthansa flights. In different phrases, when you’re flying from Rome to Seattle, Condor will promote you a ticket with the Rome to Frankfurt phase on Lufthansa, and the Frankfurt to Seattle phase on Condor.
So, why would Lufthansa agree to supply feeder site visitors for Condor, its greatest competitor within the nation? Nicely, as a result of it has legally been required to take action. The federal government has required Lufthansa to supply this moderately priced connectivity to Condor with a view to guarantee competitors in Germany.
For years, Lufthansa has been making an attempt to get out of this association, and the airline might have lastly succeeded.
Lufthansa wins court docket battle to finish Condor settlement
For years, Lufthansa has been in court docket making an attempt to get the correct to discontinue its feeder relationship with Condor, and it appears to be like just like the airline has lastly succeeded, as reported by aero.de. Germany’s Federal Court docket of Justice (BGH) has dominated in favor of Lufthansa, and towards Condor and anti-trust authorities.
Which means that Condor is not entitled to preferential pricing on Lufthansa feeder flights. Now, the 2 airways are reportedly nonetheless in some form of negotiations, and as of now, Condor is constant to promote Lufthansa’s feeder flights. Nonetheless, the airline is planning for a future with out these flights.
Solely time will inform how this performs out. Whereas it’s potential that Lufthansa will proceed to have some form of an interline settlement with Condor, I’ve to think about the charges received’t be enticing in any respect. In spite of everything, why would Lufthansa need to assist its competitor supply low-cost itineraries that undercut Lufthansa’s personal pricing? The best way Condor fills planes is with its low pricing.
I can’t actually opine on the authorized foundation for this ruling, because it’s past my space of experience, and for that matter, we’ve seen conflicting rulings from judges. One factor I can say with certainty is that Lufthansa has a really dominant place in Germany, and that’s not good for shoppers. Moreover, opponents simply haven’t had a lot luck in Germany, whether or not it’s world German carriers like airberlin, or European regional extremely low price carriers, like Ryanair.
How does Condor transfer ahead from right here?
It’s my understanding that a big share of Condor’s lengthy haul passengers connect with or from Lufthansa flights. If Lufthansa had been capable of totally minimize ties with Condor, it might be completely devastating for the airline. Sure, Condor is definitely beginning to function extra feeder flights, presumably in its greatest markets.
For instance, the airline will fly from Frankfurt to locations like Berlin (BER), Milan (MXP), Prague (PRG), Rome (FCO), and Zurich (ZRH). However even that received’t totally make up for the quantity of connectivity misplaced.
Condor is slicing six transatlantic routes particularly due to this court docket ruling. So clearly these had been additionally the markets that had been most depending on connecting site visitors from Lufthansa.
Condor is a very well run airline these days, and in the end I belief the present administration crew will discover a method to evolve. However that is nonetheless doubtlessly a reasonably tough and sudden change in enterprise plans.
Clearly transatlantic leisure demand is large, however People normally need to go to Greece, Italy, and Spain, and never Germany. 😉 And apparently for lengthy haul flights, Condor appears to be way more fashionable with a US level of sale than a European level of sale.
I nonetheless assume Condor would profit from persevering with to increase its partnerships. For instance, Condor’s progress in Seattle has been spectacular, due to the partnership with Alaska. For that matter, Condor positive could be an awesome match for oneworld, however I can’t think about the present European oneworld carriers could be down for it.
Backside line
Lufthansa has received a court docket battle, permitting the airline to finish its particular relationship with Condor. Condor has been reliant on Lufthansa for feeder site visitors inside Europe. Lufthansa hasn’t been proud of this association for years, nevertheless it was required to make sure competitors within the nation.
With Lufthansa not having to supply this connectivity, Condor goes to have to significantly rework its route community, since Frankfurt isn’t that large of a market. So possibly Condor can considerably ramp up its regional community from Frankfurt, or possibly the airline will more and more function in different point-to-point markets. Solely time will inform.
What do you make of this main growth in German aviation?
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