BGH ruling just in time: feeder - why Condor has now prevailed against Lufthansa

Introduction

The German Federal Court of Justice (BGH) has ruled in favor of Condor in the dispute over feeder flights. The airline can continue to use Lufthansa's ground handling services at Frankfurt Airport. The BGH thus overturned a previous ruling by the Frankfurt Higher Regional Court, which had given Lufthansa the right to terminate the contract with Condor. The BGH justified its ruling with the fact that the feeder flights are essential for Condor's business model. Without them, the airline would have to cancel numerous flights, which would lead to significant financial losses.

The background of the dispute

Condor has been using Lufthansa's ground handling services at Frankfurt Airport since 2013. In 2020, Lufthansa announced that it would terminate the contract with Condor. The airline justified this step with the fact that Condor is a competitor and that the ground handling services are therefore not in Lufthansa's own economic interest.

Condor took legal action against the termination and initially prevailed before the Frankfurt Regional Court. However, the Frankfurt Higher Regional Court overturned this ruling and gave Lufthansa the right to terminate the contract. Condor then appealed to the BGH, which has now ruled in favor of the airline.

The BGH's justification

The BGH justified its ruling with the fact that the feeder flights are essential for Condor's business model. Without them, the airline would have to cancel numerous flights, which would lead to significant financial losses. The BGH also stated that Lufthansa's economic interests must take second place to the interests of the passengers.

The BGH's ruling is a major setback for Lufthansa. The airline had hoped to be able to terminate the contract with Condor and thus weaken its competitor. However, the BGH's ruling makes it clear that Lufthansa must continue to provide ground handling services for Condor.

The consequences of the BGH ruling

The BGH ruling has several consequences. First, Condor can continue to use Lufthansa's ground handling services at Frankfurt Airport. This ensures that the airline can continue to operate its flights without any major disruptions.

Secondly, the BGH ruling strengthens the position of Condor in the competition with Lufthansa. The airline can now continue to offer its flights at competitive prices, even though it does not have its own ground handling services at Frankfurt Airport.

Thirdly, the BGH ruling sends a signal to other airlines that they cannot simply terminate contracts with competitors on economic grounds. The interests of the passengers must always take precedence.