Lufthansa has revealed the sway it has over its partners with the closure of Lauda Air's Milan hub in mid-November after consultation with the German major.

The hub was opened in April in a bid to get a head start on rivals in anticipation of a government plan to move airlines out to Milan/Malpensa from the 'congested' Linate airport by 1997. Competition was also tougher at Linate, explains Wolfgang Grinus, head of route development at Lauda Air, citing Milan-Paris as an example: Malpensa offers three flights a day to the French capital, while there are 14 flights from Linate.

'Our idea was to get the first foot in the door [at Malpensa],' says Grinus. 'Now the project of moving from Linate to Malpensa has been slowed down,' he says. This follows Milan airport authority's 'miraculous' 45 per cent expansion in slots at Linate.

Another reason for the decision, according to Grinus, was to add capacity at Lauda Air's Salzburg and Vienna hubs. A Canadair RJ will be stationed at each, while the third aircraft from Milan has been leased to Lufthansa CityLine.

While Grinus admits the original idea was primarily that of Lufthansa, he stresses the decision to close was a joint one. 'All European flights are conducted with Lufthansa cooperation. At the end it was a common decision and idea, but the bigger part of the idea was by Lufthansa.'

This is sure to intrigue rival Austrian Airlines, which has lodged a complaint with both the German Monopolies Commission and the European Commission about Lufthansa's influence over Lauda, in which the German carrier has a 39.7 per cent stake.

Sara Guild

Source: Airline Business