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Ryanair accuses Lufthansa of Air Berlin 'conspiracy'

Release time:  2017-08-17 Release source:  BBC Business author:  ADNose browse:  119


Ryanair has accused Lufthansa and the German government of conspiring to carve up collapsed airline Air Berlin.

Lufthansa is negotiating over buying Air Berlin planes, which are still flying following a 150m euro German government loan.

Ryanair said there was an "obvious conspiracy" between Germany, Lufthansa and Air Berlin to carve up the assets.

The German government rejected the accusation and said its support for Air Berlin did not breach anti-trust rules.

Air Berlin filed for bankruptcy on Tuesday, after its biggest shareholder, the Abu Dhabi-based airline Etihad, withdraw its financial support.

Over the past year Air Berlin's passenger numbers have been in freefall. Last month the airline - Germany's second-biggest carrier - lost a quarter of its customers compared with July last year.

'Manufactured insolvency'

Germany's economy minister, Brigitte Zypries, said that a deal whereby Lufthansa took over part of the insolvent airline should be struck in the next few months.

Ryanair said: "This manufactured insolvency is clearly being set up to allow Lufthansa to take over a debt-free Air Berlin which will be in breach of all known German and EU competition rules.

"Now even the German government is supporting this Lufthansa-led monopoly with 150m euros of state aid so that Lufthansa can acquire Air Berlin and drive domestic air fares in Germany even higher than they already are."

A German economy spokeswoman said: "I reject the accusation by Ryanair today that it was a staged insolvency application."