Ryanair cries foul over Lufthansa's inside track to Air Berlin assets

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Ryanair cries foul over Lufthansa's inside track to Air Berlin assets

Ryanair has filed a complaint with the European Commission, accusing the German government, Air Berlin and Lufthansa of an "obvious" conspiracy to keep competitors away from Air Berlin's assets.

Air Berlin filed for the European Union equivalent of bankruptcy on Tuesday. Germany extended the carrier a bridge loan of 150 million euros to keep flying in the short term.

A statement issued jointly by Air Berlin and the German government Tuesday said that negotiations between Air Berlin and Lufthansa, as well as another unnamed airline, for the sale of Air Berlin parts is underway.

Reuters, citing an unnamed source, said Wednesday that the unnamed airline is British carrier EasyJet, which is the second-largest low-cost carrier in Europe behind Ryanair. EasyJet didn't respond to a Reuters query about the matter.

"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," Ryanair said in a statement.

Air Berlin's filing to begin insolvency proceedings came after losses of 782 million euros in fiscal year 2016 and 447 million euro in fiscal year 2015. The company entered bankruptcy with nearly 1.2 billion euros in debt. But the immediate cause of the filing was a decision by Etihad, which owns 29.2% of Air Berlin, to offer no further financial support. Etihad funded 250 million euros to Air Berlin in April. 

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