Airline competition: Who gets Condor?

The market for the vacation airline is currently experiencing a wave of Consolidation. The first Air Berlin went bankrupt, then also the Germania had to give up your operation. Now Condor is for sale. The profiteer of the selection process in the German sky could once again be Lufthansa.

Prior to one week ago, the most important Airline Manager met at an industry conference in Brussels. At least in one point they agreed: The consolidation in the European air travel further. There are simply too many airlines in Europe, said Lufthansa Chairman and CEO Carsten Spohr. More bankruptcies are to be expected.

And also Ryanair boss Michael O'leary is convinced that there will be more mergers of airlines in Europe. At the end of the consolidation, only five airlines would control the market: Lufthansa, AirFrance-KLM, the British Airways-parent IAG and budget airline Easyjet and Ryanair, he predicted.

Five major Airlines are Europe dominate

Similar to Ryanair marketing chief Kenny Jacobs said at the ITB in Berlin. The market in Europe will concentrate similar to that in the United States. The five largest Airlines control 86 percent of the market. In Europe, the Top Five dominate just 66 percent of the market. "This will go in the direction of 80 per cent."

mainly on the German market, the consolidation came in last vigorous travel. By the end of 2017, Air Berlin went bankrupt and was split between Lufthansa, Easyjet and Ryanair. In January of this year, the next failure was: The German Charter airline Germania had to stop the operation.

Purchases in the Lufthansa, the Condor?

in early February of the next blow came: The German-British tour operator Thomas Cook, with brands such as Neckermann Reisen and Öger Tours has announced the sale of the aircraft division, including the daughter of Condor. Because of the financially struggling travel group takes a lot of money to invest in new Hotels.

Since then, a day without new rumors of who could swallow the Condor passes. As a big favorite the Lufthansa. Finally, the two Chefs - Lufthansa Boss Carsten Spohr and Condor CEO Ralf Teckentrup-are friends, allegedly. In addition, both Airlines have excellent knowledge of. Until 2009, the Kranich-Airline had shares in Condor.

Additional course information on Thomas Cook

Both would benefit

In addition, the Airline division of Thomas Cook, Condor is a strong Partner. Because she urgently needs to renew its fleet. Conversely, the Lufthansa could strengthen its long-haul fleet. Condor would bring on a stroke 16 Jets of the type 767-300, writes the "Handelsblatt".

now, the Condor is dependent on Lufthansa, even if no one admits it officially. The holiday-makers, the use in Frankfurt, the Condor machines, often with Lufthansa-aircraft from other Parts of Germany.

The big winner in the case of a Condor-a Takeover by Lufthansa would be their cheap offshoot Euro wings. You would be strengthened on the long-haul. No wonder Lufthansa has so far expressed only in the public interest of the Airline division of Thomas Cook. "We have proven with the Euro wings, that we can develop ourselves in this Segment, therefore, we will look at exactly what approaches could be here," said Lufthansa Executive Board Harry Hohmeister, the "Handelsblatt".

Further course information, to Lufthansa

Or Tui together with Condor?

the cartel office could make a Deal between Condor and Lufthansa a dash through the bill. Thus, it is alternatively also speculated about a possible merger of the airlines of Tui (TuiFly) and Thomas Cook. However, Tui has made-in-chief Fritz Joussen least clear that he is engaging, at best, an active observer role.

Further course information, to Tui

the interest is said to have the low-cost airlines Ryanair and Easyjet. Ryanair marketing chief Jacobs said in mid-February, the Irish low-cost airline is interested in Parts of the Thomas Cook Airlines. Would be the combined airlines re-taken apart. On the ITB Jacobs denied the alleged interest in Condor & co. They would rather grow organically, he said.

for More price information for Easyjet

wave of Consolidation in Europe

Not only in Germany, but also in the whole of Europe could accelerate information to Ryanair

Further course of the selection process soon. The duration of the loss-making Italian Alitalia is once again for sale. And also the third largest European low-cost airline Norwegian is considered to be a takeover candidate. Also, the Icelandic Wow Air is in financial difficulty and is negotiating with the US-Airline Investor Indigo on a sale. Last smaller providers such as Monarch, the Danish low-cost airline Primera Air and Small Planet went bankrupt.

Further course information, to Norwegian Air

Well possible, that the Lufthansa is also elsewhere than in Germany. The Kranich-Airline has on several occasions expressed interest in the loss-making Alitalia. Also the third-largest low-cost airline Norwegian would be a good fit in the Portfolio of the Lufthansa team. And even a Takeover of Easyjet, Lufthansa is now seen as an Option in the "Airline Monopoly".

view Ruxandra Haradau-Doser, expert Kepler Cheuvreux, fit together, Lufthansa and Easyjet very well. "The fleets of Lufthansa and Easyjet are compatible," she wrote. There are many Overlaps and, therefore, no high hurdles from the point of view of competition authorities. According to the conjecture of Kepler-analyst Lufthansa might be cheaper to wait for a quote until Easyjet shares in consequence of the uncertainty about the EU exit of the UK.

nb

source: boerse.ard.de

More:

Thomas Cook provides Airlines for sale, 07.02.2019 Air-Berlin-Poker: Is the Lufthansa monopoly?, 28.08.2017

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