Lufthansa is the big winner of Air Berlin's bankruptcy as it proceeds to market a part of its operations, thereby creating a monopoly on German air navigation.
The question of what this means for Germany, Europe and passengers is trying to answer Deutsche Welle in a related article.
An additional 3,000 jobs for Eurowings
81 of the 130 airplanes were secured by German Lufthansa, including crews. For Eurowings, a subsidiary of Lufthansa, this means that an additional 3,000 jobs will be created, says the head of the parent company, Carson Sports.
Eurowings is a "dwarf" compared to other low-cost companies such as Raynair or Easyjet, which have 400 and 300 aircraft respectively. At Eurowings, after an agreement with Air Berlin, a total of 100 more airplanes will be added. However, not all experts believe that this move will actually help.
Air Berlin's bankruptcy wraps Lufthansa / Photo: AP
Mihail Girze, an aviation expert from Fondsgesellschaft Union Investment, believes that this strategy is wrong and that Eurowings will not be able to compete against its big rivals. They have the privilege of having a simple structure and a type of aircraft, which makes them more flexible.
On the contrary, Eurowings has a complex structure, different types of aircraft and prices that are not competitive.
The justified concern of the passengers
Lufthansa does not seem to stop with the acquisition of Air Berlin. Alitalia has already seen Alitalia, a company with major financial problems, while Lufthansa's finances are blossoming, according to the head of the company, Carson Sports.
For the third consecutive year the company records a record of profits. Only in the first half of this year has a billion euros budgeted to its funds. Staff strikes have stopped, spending has narrowed, and now the company can focus on strategically important issues.
Niki Laudah, former Formula 1 driver and founder of Niki, talks about monopoly / Photo: AP
Passengers, however, are worried. Lufthansa with its subsidiaries is the one that will almost have the monopoly on domestic flights in Germany. "Ms Merkel has created a monopoly," Niki Lauda, a former Formula 1 driver and founder of Niki, said recently in German Radio.
Perhaps the passengers' concerns about the risk of higher prices may be justified. They are confirmed by the German giant leader, but he added that prices will fall in the medium and long term and there will be more competition on the European market.
What remains to be seen is, however, with passengers who have booked tickets for over-Atlantic trips with Air Berlin. The company stops its flights on October 28th. Lufthansa is studying some solutions but still nothing is officially announced.
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