Airlines Ryanair announces EU approval of Laudamotion proposal
Irish Low-cost carrier Ryanair has announced, that it has received EU approval for its Laudamotion proposal.
The EU commission decided to approve Ryanair´s acquisition of the 75% interest in Austrian airline Laudamotion, of which the carrier previously owned a 24.9% stake. Of offer competition, more choice for passengers and lower fares, Ryanair has entered a partnership with Niki Lauda, CEO of Laudamotion.
Currently, Laudamotion has most of its customers in Austria, Germany and Spain and operates with a fleet of nine A320 aircraft, that are being leased from Lufthansa.
However, Lufthansa has now decided to end the leasing contracts for the aircraft. Not only does the group need the aircraft for its Low-Cost subsidiary Eurowings, but according to Lufthansa, Ryanair has also violated the conditions of the contracts.
In a statement, the German carrier said: "As the Eurowings Group needs aircraft, Lufthansa has exercised its contractually-agreed right of termination because of a violation of contractual terms by Laudamotion and has terminated the lease agreements on nine aircraft due to the non-payment of the lease amounts involved."
Ryanair’s Chief Legal & Regulatory Officer, Juliusz Komorek stated: “We welcome the EU Commission’s decision to approve Ryanair’s proposed acquisition of a 75% interest in Laudamotion. Ryanair remains committed to bringing competition, choice and low fares to the Austrian, German and Spanish markets through our investment in Laudamotion. We urge the EU competition authorities to take action and prevent any further attempts by Lufthansa to damage competition through its anti-consumer behaviour.”
Ryanair also accused Lufthansa for not delivering two of the aircraft correctly and on time. But Lufthansa has already rejected these accusations.
Laudamotion will be able to operate a 19-aircraft strong fleet by wet leasing 10 Boeing 737-800 from Ryanair.
In March 2018, Laudamotion announced the partnership with Ryanair. The carrier aimed to establish hubs at Vienna, Zurich and in seven German cities. Laudamotion hoped to take over the slots of Air Berlin, the German airline that went bankrupt last year.
Source © corporate.ryanair.com