Lufthansa’s tourism push puts government on spot after bailout

Lufthansa’s bid to tap a revival in tourism once coronavirus lockdowns ease has put the German giant on a collision course with its former leisure arm, Condor. Lufthansa is using surplus long-haul jets to target sunspots such as Mauritius, the Dominican Republic and Namibia that are expected to recover before the airline’s bedrock corporate markets. As a result, it has ended a half century-old deal to feed passengers toward Condor, starving the smaller carrier of business on flights to many of the same destinations. The switch presents an existential threat for Condor, which has no answer but to demand German regulators intervene. A plan to merge with LOT Polish Airlines was undone by the coronavirus crisis and Condor was already on life support when Lufthansa put a target on its back. The bigger airline is desperate to scrape up passengers where it can, and makes no apologies -- daring the government to go back on its pledge not to interfere. “Life is going to be tough for Condor,” said Daniel Roeska, an analyst at Sanford C. Bernstein in London. “Lufthansa needs to generate cash, which right now is more likely to come from tourism than from business travel. Why should Lufthansa subsidize Condor with cheap feeder tickets?” Story has more.<br/>