In the midst of one of the biggest crises in the aviation industry, triggered by the Corona pandemic, a heated legal dispute broke out between the German airlines Lufthansa and Condor. At the heart of the conflict is the termination of the cooperation on feeder flights by Lufthansa and the subsequent lawsuit by Condor. After initial successes for Condor, the tide is now turning in Lufthansa's favor.

A few years ago, Lufthansa terminated its cooperation with Condor, which provided that Condor passengers could use feeder flights to the Frankfurt hub at favorable conditions. This decision, taken in the midst of the pandemic in 2020, was contested by Condor. The Federal Cartel Office then ruled that the termination represented an abuse of Lufthansa's dominant market position and imposed an obligation to continue the Special Prorate Agreement (SPA).

In a recent twist, the Higher Regional Court (OLG) in Düsseldorf has upheld a complaint by Lufthansa. The court expressed doubts about the bias of the judges in the previous decision and temporarily suspended the Federal Cartel Office's ruling. This means that Lufthansa is not obliged to grant Condor feeder flights under the agreed conditions for the time being.

Lufthansa spokeswoman Anja Lindenstein welcomed the decision and explained that it repeals the previous decision of the Federal Cartel Office. Condor also confirmed the temporary suspension of the decision, but stressed that tickets already booked were still valid and new tickets including feeder flights could still be booked. Both airlines have agreed to a temporary continuation of the SPA under adjusted conditions until the end of the 2024 summer flight schedule.

Reactions and implications

Lufthansa is celebrating the decision of the Düsseldorf Higher Regional Court as an important legal victory. However, the outcome of the main proceedings, which are to thoroughly examine the entire case, remains to be seen. Condor expressed cautious optimism and confirmed that the new managing director, Peter Gerber, is seeking an out-of-court settlement to end the lengthy legal dispute.

Peter Gerber, who recently took over the management of Condor, stressed the need for a quick agreement: "The legal dispute could last another three to five years. An out-of-court settlement would therefore be better for both parties." This statement underlines the urgency of a solution that is both economically and operationally advantageous for both parties.

Impact on the aviation industry

The legal dispute between Lufthansa and Condor has far-reaching implications for the German aviation industry. The decision to cancel feeder flights came at a time when airlines worldwide were fighting for survival. These legal disputes highlight the tensions and challenges that airlines face in the current economic situation.

The feeder flights are crucial for Condor to bring passengers to the long-haul flights to Frankfurt. The interruption of this cooperation would have a massive impact on Condor's competitiveness and the convenience of travelers. At the same time, Lufthansa is using its dominant market position to push through its own interests, which is not without controversy in the industry.

While the main proceedings are still pending and there is the possibility of an out-of-court settlement, the situation remains uncertain for both airlines. The upcoming decision by the Düsseldorf Higher Regional Court will be groundbreaking and could set a precedent for similar disputes in the future.

The industry is closely monitoring this case as it provides insights into the dynamics and power structures within the German aviation market. A long-term solution could also serve as a model for future cooperation and conflict resolution.