Lufthansa offers to sacrifice routes to save Air Berlin deal: source

Lufthansa is willing to sacrifice the right to fly some routes to save its deal to acquire assets of Air Berlin, the low-cost airline that collapsed recently, a source familiar with the company’s thinking said Thursday. The carrier will submit its proposed concessions to the EC before a midnight deadline, including giving up so-called ‘slots’ belonging to Air Berlin businesses Niki and LG Walter, the source said. Lufthansa last month signed a E210m deal to take over Niki and LG Walter, plus some short-haul planes, to cement its position in Germany and expand its Eurowings budget brand. But the deal has drawn fire from competitors and consumer advocates who fear Lufthansa would dominate German domestic routes and Austria where Niki, founded by retired Formula 1 world champion Niki Lauda, is based. Lufthansa already owns flag carrier Austrian Airlines. The German government, which offered a bridging loan to keep Air Berlin flying until a deal could be done to sell its viable operations, held crisis talks with Lufthansa representatives on Thursday afternoon to discuss concessions to offer to Brussels. A spokesman for the Economy Ministry declined to confirm or deny whether the meeting took place, as reported earlier by the Bild am Sonntag tabloid. Lufthansa and the EC declined to comment. Lufthansa CEO Carsten Spohr met EU Competition Commissioner Margrethe Vestager on Wednesday in Brussels, where sources said the EC is leaning towards blocking Lufthansa’s takeover of Niki. Bild am Sonntag, citing its own sources, said the German government was alarmed that the deal may be blocked and had urged Lufthansa to make further concessions.<br/>