Lufthansa and Frankfurt Airport. Charges dispute only partially resolved

Premium Analysis

On 5-Jul-2017 Lufthansa and Fraport (the owner and operator of Frankfurt Airport) came to an initial short term agreement on airport charges, giving Lufthansa some incentives for further growth at the airport. The airline and the airport company are now in discussion over an agreement to cover the medium and long term.

This follows a period of strained relations between the two as a result of Fraport's decision to facilitate Ryanair's entry into Frankfurt Airport by offering the LCC discounted charges. Lufthansa felt that it should be given the same discounts as granted to Ryanair on the same routes.

Lufthansa and Fraport need each other, but there is always likely to be some tension between them. Lufthansa is Frankfurt Airport's biggest airline, with close to two thirds of all seats at the airport, but Ryanair's growth will make the LCC the number two airline this winter.

Frankfurt is Lufthansa's biggest airport and main hub, but Munich gives it some options for growth elsewhere and has given it leverage over Frankfurt. For Germany's biggest airline and airport alike, competition focuses the mind.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 2,024 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.