Ryanair Accuses Lufthansa of Air Berlin Conspiracy

Ryanair Accuses Lufthansa of Air Berlin Conspiracy
20 Sep
2017

Ryanair lately criticized Lufthansa and the government of Germany for conspiring in the latest set of woes facing Air Berlin that have seen it file for bankruptcy. The budget airliner launched its complain with German regulator and European commission. Air Berlin problems begun with the blatant free fall of travelers in the last two months. In an unprecedented event, its largest shareholder, the Etihad airways withdrew its financial support rendering a major blow to the airline. The airline responded by seeking a reprieve loan from Euro.

The budget airline accused the trio of organizing a conspiracy to carve up the assets of the company in the wake of the series of events. It is notable that Lufthansa is negotiating buying the air Berlin planes. Nonetheless this criticism was quickly responded to by German government who defended their support of the airliner, also arguing that in no way does that action contravene trust laws.

Lufthansa Takes Over Air Berlin

According to European competition laws, that Ryanair cited, the Lufthansa deal is a great violation since it is based on the premise of what the budget airliner termed as manufactured insolvency. This is because the whole process, according to them, is calculated to make Lufthansa take over an air Berlin that is debt free thus giving it an unpatrolled advantage. Having the Germany government support the monopolistic tendencies of Lufthansa with state sponsored 150m euros is a great breach of business trust, an accusation that was practically denied by Germany authorities that the initial basis of allegations that the insolvency was stage managed was fundamentally flawed. The budget airline believes that the new deal will not be at the interest of the majority as it will help push travel charges in the domestic scene even higher than they already are.

Not the First Time that Ryanair Complains

This criticism has nevertheless not dislodged the Lufthansa airline from its bid to take over part of the assets of the airline noting that it will continue further to conclude the multibillion Euro deal. At the height of this criticism is the realization that it is not the first time that Ryanair has accused the airline of foul play and especially in its relationship with the air berlin. Previously, the two had a wet lease arrangement whereby Lufthansa operated 38 air berlin airbus jets which was utterly called a funny joke and business arrangement by Ryanair chief executive officer Michael O’Leary. The airline deal has also been criticized by union laborers that it resulted to collapse of labor talks.

The chief executive noted that the airline was using untenable competition schemes whereby the seemingly take over deal was a clear calculation by Lufthansa to control the capacities of its key competitors, provide price leadership and determine the destination of aircrafts. It is however noted that despite these problems in air berlin, the there being provides a greater competition future in Germany.

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