EU Accuses Lufthansa of Stifling Condor's Frankfurt-New York Route Competition
The European Commission has stepped in to protect competition on the Frankfurt-New York air route. It has issued a Supplementary Statement of Objections to Lufthansa, accusing the airline of restricting Condor's access to key connecting traffic. Without this access, Condor's future on the route could be at risk.
The investigation centres on Lufthansa's 2020 decision to end special prorate agreements (SPAs) with Condor. These agreements had allowed Condor to rely on Lufthansa's feed traffic—a critical factor for its operations between Frankfurt and New York.
The dispute began in 2020 when Lufthansa terminated its SPAs with Condor. These deals had enabled Condor to tap into Lufthansa's network of connecting passengers, helping it maintain a viable service on the Frankfurt-New York route. Once the agreements ended, Condor's ability to compete on the route weakened significantly.
The Commission's investigation now focuses on whether Lufthansa's actions, linked to the A++ transatlantic joint venture with United and Air Canada, violate EU competition rules. Specifically, it is examining potential breaches of Article 101(1) of the Treaty on the Functioning of the European Union (TFEU) and Article 53 of the EEA Agreement. Preliminary findings suggest that the joint venture restricts competition on the Frankfurt-New York route. The Commission has warned that without intervention, Condor may struggle to operate sustainably. To prevent serious and irreversible harm to competition, interim measures are being considered. As part of these measures, the Commission plans to order Lufthansa to reinstate Condor's access to feed traffic under the terms agreed in June 2024. Such steps are only taken when there is clear evidence of competition law violations and an urgent need for protection. The investigation itself has no fixed timeline, as its duration depends on multiple factors, including the complexity of the case.
The Commission's intervention aims to safeguard competition on a major transatlantic route. If the interim measures proceed, Lufthansa will have to restore Condor's access to feed traffic under the previously agreed conditions. The outcome will determine whether Condor can continue serving Frankfurt-New York without facing unsustainable operational challenges.
