Condor Airlines Evaluates the Legal Future of the Lufthansa SPA Dispute

Condor CEO Peter Gerber has announced that the legal process regarding the termination of the Special Prorate Agreement (SPA) signed with Lufthansa has not yet been clarified.

Court Decision and the Scope of the Crisis

The Higher Regional Court of Düsseldorf (OLG Düsseldorf) overturned the German Competition Authority’s (Kartellamt) ruling that had obliged Lufthansa to reinstate the SPA, citing procedural errors. However, the court did not address the accusation that Lufthansa had abused its market power.

This decision has further complicated the process for both the Kartellamt and Condor. Previously, Lufthansa had replaced the SPA with an interlining agreement and reduced feeder flight capacity. This change negatively affected Condor’s load factors on long-haul routes.

The Importance of the SPA and Its Economic Impact

Through the SPA agreement, Condor had for many years benefitted from Lufthansa’s feeder services, which were particularly crucial for filling its long-haul flights. Without the SPA, competition on certain routes diminishes, and financial challenges increase.

Condor CEO Peter Gerber stated that the airline can continue operations without the SPA, but noted: “It’s possible, but economically more difficult.” He emphasised that Condor still believes Lufthansa, due to its market power, must ensure competitive access to its feeder network.

Operational and Strategic Steps

Five years have passed since the beginning of the SPA crisis. At the end of 2024, Lufthansa replaced the SPA with an interlining agreement and significantly reduced feeder passenger allocations. Previously, around 25% of Condor’s long-haul passengers arrived in Frankfurt via Lufthansa flights; this share has now dropped to 3–5%.

As a result, the profitability of many Condor routes has declined. The airline decided to discontinue services to Washington DC, Minneapolis, San Antonio, and Phoenix in the United States, as well as Halifax and Edmonton in Canada. Lufthansa’s ticket prices on these routes have risen as competitive pressure has disappeared.

Condor has begun building its own feeder network in Germany and across Europe, while also strengthening regional airline partnerships in Latin America and Asia. These moves have helped maintain high load factors on its long-haul services.

Gerber said there is no clear estimate on how long the legal process will take: “We don’t know how long it will be; three, five, seven years perhaps.”