Lufthansa is feeling the heat of stiff competition from Middle-East airlines. In a matter of years they have become a force to be reckoned with as the Gulf states spare no expense to compete agressively for the same passengers.
Germany's Lufthansa Group looks set to expand, even as some rival airlines cut back or fall into bankruptcy. It has set its sights on becoming a leading global player. But air travel markets remain fiercely competitive.
Without much fanfare Lufthansa will take over portions of the insolvent Air Berlin, ending a long period of suffering for Germany's second-biggest airline. That said, competition regulators will be watching very closely.
For years, Lufthansa has been wrangling with its pilots as the airline attempted to reduce costs. A deal struck with its main pilots union on Tuesday should ensure significantly less labor turbulence in the years ahead.
Privately owned carrier Germania has announced it's not willing to accept a state loan that the German government has promised to grant insolvent rival Air Berlin. It took legal action to stop the credit.
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