Lufthansa eyes EU green light for Air Berlin spoils

FE Team | Published: December 21, 2017 21:09:38

FRANKFURT AM MAIN, Dec 21 (AFP): German carrier Lufthansa hopes to win European Union (EU) approval Thursday to snap up a slice of bankrupt Air Berlin's operations, after competition concerns forced it to scale back its bid for the homegrown rival.
Responding to signals that the European Commission was likely to veto its ambitious plans, the German behemoth last week ditched its bid to buy Air Berlin's Austrian unit Niki, focusing instead on the acquisition of the failed airline's smaller LGW subsidiary.
The more modest offer now on the table would see Lufthansa acquire the operations of LGW, a regional carrier employing some 500 people.
That includes taking over the roughly 30 planes flown by LGW but leased from other companies, a source familiar with the bid has told AFP.
Lufthansa already holds some of LGW's coveted landing and takeoff slots and has agreed to give up others in order to secure the go-ahead from competition regulators.
"There's a very strong, more than ninety per cent chance that the Commission will give its green light on December 21," a source close to the matter in Brussels told AFP.
The European Commission declined to comment, but earlier this month it already approved the purchase of Air Berlin's operations at the German capital's Tegel Airport by British low-cost carrier easyJet.
Under the deal, easyJet will spend some 40 million euros ($47 million) to enter into leases for up to 25 aircraft and take over slots in Berlin.