Insolvency of Air Berlin boosting air ticket prices: Lufthansa

The filing of bankruptcy by Air Berlin has led to a capacity bottleneck leading to cheaper fares getting sold off faster, which in turn has led to rising prices for air fares in Germany.

On Thursday, Andreas Mundt, the head of a German cartel office told German newspaper Sueddeutsche Zeitung that airlines should not be allowed to hide their price hike behind computer-based algorithms in order to justify higher prices.

The interview comes in the wake of German authorities reviewing a recent spike in airline ticket prices.

In November, the office of the German cartel asked Lufthansa, its national carrier, for information on ticket prices after receiving complaints over rising fares following the collapse of Air Berlin, the country’s second largest carrier.

At that time, Lufthansa said it was fully cooperating with the cartel office and did not change its pricing structures that are automatically determined by software.

“Such algorithms aren’t written by god in the heavens,” said Andreas Mundt to the Sueddeutsche Zeitung.

As per Lufthansa, the insolvency of Air Berlin has led to a capacity bottleneck which in turn has led to cheaper tickets being sold sooner than expected.

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