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Aviation News Lufthansa offers fresh concessions in Air Berlin bid

Lufthansa offers fresh concessions in Air Berlin bid

AFP
01 DEC 2017 | 381 words
Lufthansa offers fresh concessions in Air Berlin bid
© Le Journal de l'Aviation - all rights reserved

German aviation giant Lufthansa has offered concessions to encourage the European Commission to green-light its planned purchase of parts of bankrupt Air Berlin, the Brussels authority told AFP.

"We have received remedies" from Lufthansa concerning the case, a spokesman said.

As Europe's highest competition authority, the Commission is examining the impact the German group's plans would have on the continent's aviation market.

Now that Lufthansa has submitted more extensive concessions, the deadline for Brussels to reach a decision has been pushed back from December 7 to December 21, the spokesman added.

The group itself declined to comment when contacted by AFP, saying it had "agreed confidentiality" with the Commission on the details of its offer.

Lufthansa, which stands at the head of a group including Eurowings, Swiss, Austrian and Brussels airlines, could give up some of its takeoff and landing slots at large German airports, news agency DPA reported citing people familiar with the case.

Given its dominant position in domestic air travel, Lufthansa might have to give up certain routes in exchange for approval, European Commission competition chief Margrethe Vestager said in a recent interview with German media.

Chief executive Carsten Spohr said he would be "ready" to meet her demands in a later press conference.

Shares in Lufthansa gained 1.28 percent around 1120 GMT on the news, topping the DAX index of blue-chip German shares.

The Frankfurt-based airline group hopes to pay 210 million euros ($250 million) for 81 aircraft from Air Berlin's 140-strong fleet, plus takeoff and landing slots as well as Austrian subsidiary Niki.

Britain's Easyjet also hopes to snap up parts of the stricken German airline.

Niki's aircraft continue to fly as it is not subject to the same bankruptcy conditions as Air Berlin, but its financing from Lufthansa would fall away if Brussels blocks the planned takeover, potentially pitching the airline into financial turbulence.

Weekly Bild am Sonntag reported that British Airways and Iberia parent company IAG could snap up Niki if Lufthansa's bid falls through, while founder and former Formula One champion Niki Lauda has also expressed interest in a joint bid with tourism group Thomas Cook.

 
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