Lufthansa Defeats Federal Cartel Office in Feeder Flights Case with Condor

The dispute traces back to the Special Prorate Agreement (SPA), which enabled Condor to channel passengers from Lufthansa’s short-haul network into its own long-haul operations. Following termination of the SPA in late 2020, the FCO ordered Lufthansa in August 2022 to reinstate the agreement at preferential rates - a ruling that Lufthansa promptly challenged.

In May 2024, the OLG Düsseldorf granted Lufthansa interim relief, putting the FCO’s order on hold due to significant doubts about its procedural and substantive foundations. That decision was upheld in December 2024 by Germany’s Federal Court of Justice (BGH).

Beyond the courtroom: EC investigation closed

Parallel to the German proceedings, the European Commission pursued interim measures under antitrust scrutiny of Lufthansa’s A++ transatlantic joint venture with United Airlines and Air Canada. The Commission had entertained the possibility of compelling Lufthansa to maintain the SPA with Condor. However, after a rigorous defense—including two statements of objection, two letters of facts, and two oral hearings—the Commission closed the interim measures investigation with no action taken earlier in February 2025.

Significance and industry impact

This marks the first time a German court struck down an FCO decision on procedural-bias grounds - a precedent scrutinized in competition law circles. The dual wins - both at the OLG Düsseldorf and with the European Commission - allow Lufthansa to proceed with its strategic network realignment, unhindered by regulatory constraints. Facing the erosion of long-used preferential terms, Condor has already begun constructing its own feeder infrastructure and may seek alliances with carriers outside Lufthansa’s orbit.

What’s Next?

While Lufthansa secures a clear legal win, the underlying competition issues - whether Condor’s access to Lufthansa’s feeder network is essential for fair competition - remain unresolved on substantive grounds. Condor may continue to contest the outcome or pursue alternative strategic alliances and network solutions.

Lufthansa’s legal success in overturning the FCO’s 2022 order, supported by Latham & Watkins and Hengeler Mueller, underscores the critical interplay between procedural integrity and substantive competition law. It also highlights the importance of strategic litigation in aviation sector disputes, where formal errors can be as decisive as economic arguments.

Legal teams at the helm

Lufthansa’s defense was spearheaded by Latham & Watkins, with Hengeler Mueller acting as co-counsel. The team included Latham partners Michael Esser (Düsseldorf) and Sven Völcker (Brussels), supported by associates Janine Flohr and Jörn Kramer. Lufthansa’s in-house counsels—Jörg Meinke, Marc Wiesner, and Christine Nowak—played a pivotal collaborative role. Hengeler Mueller’s Brussels team included Christoph Wilken (lead antitrust partner), Christian Dankerl (counsel) and Christoph Sielmann (associate).

Image: © hessenschau.de