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Airplanes and competition. Lufthansa accused of raising prices

Berlin, Germany - According to the President of the German competition authority the airline would have taken advantage of the bankruptcy of Air Berlin

In an interview that was published yesterday on the German newspaper "Suddeutsche Zeitung" the President of Bundeskartellamt -the authority that takes care about competition in Germany- Andreas Mundt talked about the increases in ticket prices of Lufthansa flights, which were reported since the airplanes of Air Berlin were grounded when the company went bankrupt. Lufthansa had said that it did not change its method to manage fares, which are automatically regulated by an algorithm of the booking management system. According to Mundt the airline cannot anyhow hide behind such an algorithm: aknowledging that the increases in prices came in a market economy where there are a high demand and a supply that is severely limited by the sudden shortage of aircraft- it is being evaluated if the threshold beyond which there would be an abuse of dominant position has been exceeded. For Lufthansa -that rejects the accusations- the increases in fares would be also related to innovations on the offered services.

AVIONEWS - 1209368

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