Watchdog slams Lufthansa over ‘algorithm’ price hikes
Frankfurt am Main, (MILLAT ONLINE):Germany’s competition watchdog on Thursday rubbished Lufthansa’s claim that recent price hikes on domestic routes were purely down to automated booking software, saying companies shouldn’t “hide behind algorithms”.
Germany’s Federal Cartel Office (FCO) is currently probing complaints that Lufthansa fares shot up on some routes after bankrupt rival Air Berlin stopped flying in late October.
Lufthansa has denied changing its pricing methods, arguing that its fully-automated booking system was simply responding to a spike in demand following the Air Berlin collapse and displaying higher average prices as a result.
But in an interview with the Sueddeutsche Zeitung daily, FCO president Andreas Mundt said that justification didn’t hold up.
“That’s beside the point” he said.
“Companies can’t hide behind algorithms.”
Industry experts say Lufthansa ticket prices have jumped by 30 percent on some routes,
according to German media.
The airline, however, has repeatedly denied cashing in on its dominant position and has promised
to make more seats available on popular routes.