The insolvency of Air Berlin has stoked fears of dominance of the Lufthansa group in Germany, the second-largest air traffic market in Europe. Consumer protection agencies predicted significant fare increases, and took it as proof that, at the beginning of November – just days after Air Berlin ceased operation – the spot fares on some German domestic flights rose by up to 30%.
An analysis by PROLOGIS STRATEGY provides a much more differentiated picture (Since the news of last week about the failed takeover of Lufthansa did come in after the copy deadline, this analysis is based on the assumption that Niki would be integrated into Eurowings).
Intercontinental routes from and to Germany have seen only marginal capacity shifts. When they ceased their long-haul operation without substitution in October, Air Berlin had a seat share of only 6% in that segment. Lufthansa/Eurowings announced they would be inaugurating their own flights between Düsseldorf and Miami/New York, as well as Berlin and New York, while Condor opened up routes from Dusseldorf to the Caribbean. Accordingly, Air Berlin’s stake is equally shared between Lufthansa (+3% to 43%) and other airlines (+3% to 53%). Read More