Rumor: Lufthansa to receive a green light for LG Walter purchase
Lufthansa (LHAB) (LHA) will be granted the rights to purchase bankrupt Air Berlin’s (AB1) subsidiary LG Walter, Reuters reports. The publication quotes two sources claiming that the German carrier will be granted approval as it agreed to give up slots at Dusseldorf Airport.
Lufthansa (LHAB) (LHA) has already made concessions in order to get permission to purchase Air Berlin’s (AB1) subsidiaries. The previous concessions also include giving up numerous slots as well as the ambitions to acquire Niki – another subsidiary of the insolvent carrier.
In October 2017, Lufthansa (LHAB) (LHA) and Air Berlin (AB1) signed a €1.5 billion euro purchase agreement for large parts of the troubled carrier, including over 81 aircraft. In addition, Lufthansa (LHAB) (LHA) intended to obtain Air Berlin’s (AB1) business units LG Walter and Niki for approximately €210 million.
The deal has to be approved by the EU Commission, who had expressed antitrust concerns, as the purchase, in its initial form, would allow Lufthansa (LHAB) (LHA) to become a dominant carrier in both German and Austrian air travel markets.
“We have quite deep competition concerns,” European Competition Commissioner Margrethe Vestager pointed out in the beginning of December 2017 as quoted by Reuters. “There is a risk that Lufthansa (LHAB) (LHA) becomes de facto a monopoly on a significant number of routes.”
Lufthansa (LHAB) (LHA) announced quitting the pursuit of Niki as part of the concessions made on December 13, 2017. After Lufthansa (LHAB) (LHA) backed out, the bankruptcy administrator of Air Berlin Group could not find another investor for the Austria-based leisure airline. Consequently, Niki stopped its operations and began insolvency proceedings.
Lufthansa Group owns Austrian Airlines, Swiss Airlines, Eurowings and Brussels Airlines, as well as a share in the Turkish SunExpress. In addition, the group includes logistics, technical and service companies.
Air Berlin (AB1) had filed for insolvency in the middle of August, 2017. Its flight operations stopped at the end of October, 2017, except for the flights by Air Berlin’s (AB1) brands Niki and LG Walter that continued to operate with the help of Lufthansa (LHAB) (LHA) up until now.
Iberia Express cabin crew to go on strike for 10 days
Cabin crew of Spanish low-cost carrier Iberia Express plan a 10-days-long strike to ask for higher salaries. ...
South African Airways races to rectify administrative breaches or lose license
South African Airways is responding after being charged with administrative breaches that may result in it losing its li...
Wizz Air A321neo performs incredibly low landing in Greece: video
Holidaymakers on Skiathos island in Greece witnessed an incredibly low landing of the Wizz Air brand new Airbus A321neo...