Germany’s antitrust agency has decided against opening proceedings against Lufthansa over steep price increases following the bankruptcy of former rival Air Berlin last year, reported Reuters.
Air Berlin, which was once Germany’s second-biggest airline, ended operations in October. That left Lufthansa with a de facto monopoly on several domestic routes for a time.
The cartel office said that Lufthansa tickets were on average 25-30 percent more expensive after the insolvency but fell again after easyJet (EZJ.L) entered the market following the acquisition of parts of Air Berlin.
“The price increase is significant, but does not justify the instigation of market abuse proceedings,” cartel office president Andreas Mundt said in a statement.
A Lufthansa spokesman said the company acknowledged the decision, declining to comment further.
Full Content: Reuters
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