Brussels, 23/12/2005 (Agence Europe) - The European Commission has cleared the planned acquisition of control by German airline Deutsche Lufthansa AG over the German airline Eurowings Luftverkehrs AG and its subsidiary, low cost airline Germanwings. The Commission's clearance is conditional upon the parties surrendering slots at Vienna and Stuttgart airports and other concessions, such as allowing competitors to participate with their flights on the affected routes in Lufthansa's Frequent Flyer Programme. Competition Commissioner Neelie Kroes commented in a press release that "the Commission has ensured that other carriers will be able to offer services in competition with the merged company. This was essential because, with this transaction, Lufthansa will acquire control over a low cost airline for the first time, and low cost airlines provide important competition on some routes".
Lufthansa already owns a 49% shareholding in Eurowings but currently Lufthansa is not able to determine the strategic commercial behaviour of Eurowings and Germanwings. Lufthansa and Eurowings intend to sign an agreement whereby Lufthansa will acquire the majority of the voting rights in, and sole control of, Eurowings and Germanwings, which operates from Cologne/Bonn, Stuttgart and Berlin-Schönefeld airports and, as of the beginning of the winter season 2005/2006, from Hamburg. The Commission took account of the fact Lufthansa is a member of the Star Alliance of airlines and works closely with Austrian Airlines.