Condor loses to Lufthansa in Battle over Feeder Flights

Germany's Federal Court of Justice (BGH) has ruled in favor of Lufthansa, allowing the airline to terminate its Special Pro-Rate Agreement (SPA) with Condor. This agreement had provided Condor with reduced rates for feeder flights operated by Lufthansa, facilitating passenger connections to Condor's long-haul services.

The court's decision marks a significant setback for Condor, which has relied on these feeder flights for approximately 30% of its passenger traffic on certain routes. In response, Condor is restructuring its operations to mitigate the impact. The airline plans to expand its own feeder services from both domestic and select European cities, aiming to reduce dependence on Lufthansa's network.

Additionally, Condor has announced the discontinuation of several transatlantic routes from Frankfurt, including services from Baltimore, Minneapolis-St. Paul, Phoenix, San Antonio, Edmonton, and Halifax, effective in 2025. This strategic adjustment reflects Condor's efforts to adapt to the new competitive landscape and maintain its market presence despite the loss of preferential access to Lufthansa's feeder flights.

The BGH's ruling underscores the evolving dynamics of the German aviation market, highlighting the challenges faced by airlines in securing competitive advantages and the importance of strategic adaptability in response to regulatory and market changes.