Lufthansa's financial assistance under investigation by Condor in the context of an EU complaint

In a surprising turn of events, budget airline Condor is contemplating further legal action against Lufthansa. This development comes after Lufthansa unexpectedly terminated a long-standing contract for feeder flights for its former budget subsidiary in November.

Historically, the two airlines have barely interfered with each other, focusing mainly on their respective segments - Condor catering to holidaymakers and Lufthansa targeting business customers. However, Lufthansa's recent shift towards targeting holiday destinations could impact the competitive landscape.

The termination of the contract could lead to a dominant market position for Lufthansa on tourist long-haul routes, a concern that Condor's management has expressed. They believe that smaller competitors are being squeezed out by Lufthansa, a violation of the condition set by the EU Commission when it approved Lufthansa's aid in summer 2020. The aid was given on the condition that smaller competitors would not be squeezed out.

CEO of Condor, Ralf Teckentrup, may intervene with the EU Commission regarding this matter. He has already involved the Federal Cartel Office, which could lead to a resolution or further escalation in the dispute.

Condor is exploring "all legal options", and it is not yet clear whether these actions will take place at the European Court of Justice (EuGH) or national courts, depending on the legal claims made. The airline is concerned about the potential market dominance by Lufthansa and the impact it could have on competition in the tourist long-haul market.

As the business customer segment declines, Lufthansa is aiming to target more holiday destinations in the future. This shift could alter the competitive dynamics in the industry, prompting Condor to take action to protect its market position. The outcome of this dispute could have significant implications for the airline industry in Europe.