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Lufthansa and Frankfurt Airport. Charges dispute only partially resolved

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.

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