The Bundeskartellamt has cleared the merger of Lufthansa and Eurowings. The President of the Bundeskartellamt, Dr Böge, stated: „As a consequence of the decision, conditions and obligations will take effect which prevent a further consolidation of Lufthansa’s dominant position in domestic German air traffic. These will allow the entry to the market of a new operator – European Air Express (EAE), based in Mönchengladbach – and will open up the domestic German air traffic market.”

The Bundeskartellamt has agreed with the companies concerned that Lufthansa and Eurowings will transfer some of their domestic air services to EAE which, commencing with the winter flight schedule 2001/2002 will operate three daily scheduled flights each on the Dortmund – Munich and Paderborn – Munich routes and commencing with the summer flight schedule 2002 the same number of scheduled flights on the Nuremberg – Berlin route.  In addition, EAE plans to start operating further domestic routes and is buying five aircraft from Eurowings for this purpose. Lufthansa and Eurowings will accordingly reduce their number of flights on the routes mentioned. With the arrival of EAE competition will be maintained on routes previously flown in competition by Lufthansa and Eurowings.

EAE’s market entry will be protected from competition for six flight plan periods. During this period the parties to the merger may not increase their flight frequency or seating capacities on the said routes.

Furthermore, in the event of EAE extending their flight services, Lufthansa and Eurowings are obliged to give up more take-off and landing slots at Düsseldorf, Munich or Frankfurt Airport to ensure that competitive alternatives in domestic air traffic are accordingly increased and developed.

At the same time Lufthansa is obliged to open up the Miles & More customer loyalty programme to EAE and all other existing or future competitors on domestic routes.

As a further measure to open up the market, in the event of the entry of a new operator, the merging companies will be required to reduce their services accordingly on the routes previously flown exclusively by Eurowings and to relinquish the respective number of slots.

In order to facilitate the start-up of scheduled flights on new routes the Bundeskartellamt has ordered Lufthansa and Eurowings to allow other competitors in domestic German air traffic which are planning to set up domestic flight connections with Düsseldorf, Munich or Frankfurt as airports of origin or destination up to six take-off or landing slots at these airports.

The President of the Bundeskartellamt, Dr Böge, stated: “As a consequence of the obligations imposed competition structures will continue to be maintained and the basis for potential competition improved.  This is in the interest of the consumer.  The merger of Lufthansa and Eurowings can thus be cleared."