Eurowings offers concessions to German Cartel Office

Eurowings has offered concessions to the German Federal Cartel Office in an effort to gain approval for Lufthansa‘s proposed acquisition of a 24.9% stake. In March, the cartel office announced it would oppose the deal, on the grounds that it would exacerbate Lufthansa’s already dominant position in Germany’s domestic market. In an effort to alleviate these concerns, Eurowings is offering to reduce capacity on its Dortmund-Münich, Paderborn-Münich, and Nürnberg-Berlin routes, so as to allow new competitors to enter them. Currently, Eurowings and Lufthansa both serve these routes, having backed off an earlier plan to combine their flights. Whether this concession will suffice to placate the cartel office remains to be seen. A final decision is expected by the end of August. Eurowings operates six BAe 146-200s and four series 300s.

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