The bankruptcy of former second largest German airline Air Berlin provides for higher costs in German economy. According to a survey by Association of German Travel Management (VDR) – a merger of major airline customers – airline tickets increased by up to 50 percent among ir members. The VDR thus supports earlier calculations that prices have risen from Air Berlin bankruptcy to short-haul routes between 26 per cent on working days and almost 39 percent on weekends – not only for business travellers but also for private customers.
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Experts had expected increase. Due to Air Berlin bankruptcy, a major competitor is missing on many routes – especially from Berlin and Düsseldorf. The former rivals of Berlin airline can hardly cover demand. In meantime, Lufthansa had used large-scale aircraft such as Boeing 747 on domestic routes, but y were also sold out quickly.
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VDR-Presidium member Christoph Carnier refers above all to difficulties faced by companies that are located off metropolitan areas. Their situation has deteriorated dramatically in terms of ticket availability, frequency and price, “laments Carnier. The Lufthansa group points to mix of increased demand and reduced supply. There was no change in price structure, said a spokeswoman for largest German airline.
According to Lufthansa chief Carsten Spohr, re are currently about 60,000 seats missing per day. Remedy would be to create a positive cartel decision by EU Commission to take over Air Berlin through Lufthansa and easyjet. However, observers are no longer expecting a decision from Brussels this year – unless EU Commission renounces “in-depth examination” of Air Berlin deal, which has actually been announced.
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Then air-Berlin-buyer, British airline easyjet, will also gradually offer additional flights. Until September 2018 all purchased 25 jets will be in operation. The routes and dates to be used are not yet known. An offer is expected on currently booked intra-German routes such as Frankfurt-Berlin, Berlin-Munich or Düsseldorf-Munich.
In any case, VDR-Mann Carnier wants a quick decision: “The European Commission and competent antitrust authorities should examine Lufthansa application for a partial takeover of Air Berlin in line with competition route for track – without, however, To prolong procedure. “
