European Union regulators are launching an investigation into Lufthansa’s bid for Austrian Airlines, saying the deal could reduce choice and hike fares for passengers on some routes.The European Commission said it had “serious doubts” that the takeover could proceed without the airlines making some changes to eliminate antitrust concerns.

Some 45 corporate travel buyers, travel agencies and other industry participants today wrote to Wolfgang Mayrhuber, Chairman and CEO of Lufthansa (LH), urging him to abandon the carrier’s Preferred Fares Program (PFP). Underscoring broad global travel industry rejection of PFP, signatories hail from nine countries - Germany, South Africa, Belgium, India, Dubai, UK, The Netherlands, Canada and U.S.  More than half of signatories are headquartered or have offices in Germany.

Lufthansa has said its earnings will decline considerably more in 2009 than expected just a month ago, and “substantially below” 2008 figures. But the German flag carrier said despite the slump, it remains confident of beating rivals’ earnings performance this year as it cuts back on spending.Speaking at Lufthansa’s AGM, CEO Wolfgang Mayrhuber said “Our goal is to remain profitable. Our major competitors are forecasting losses.”

The Lufthansa Group increased its offer and sales during the past business year. The Group was able to almost reproduce its previous year’s result by posting operating profit of around 1.35 billion euros. The Group profit was posted at 599 million euros; Last year’s figure had been 1.66 billion euros, however, it had also included 585 million euros of profit from extraordinary items. “This represents an outstanding result and its quality is underlined by the fact that it has been achieved during a time of global economic crisis. It reflects the quality of our company. A company in which a strong team, strong products and a strong balance were decisive in ensuring success. We intend to maintain our lead in the far more challenging environment of 2009. Our financial and operational flexibility will allow us to benefit from the opportunities that come our way during the crisis”, commented Lufthansa Chairman and CEO Wolfgang Mayrhuber, speaking at the presentation of the annual result for 2008. In view of the very good result and taking into consideration the current challenging economic situation, the Supervisory Board and Executive Board will be proposing a dividend of 70 eurocent per share at the annual general meeting.

An oasis of calm and relaxation awaits Lufthansa First Class passengers and members of the HON Circle at the new First Class Lounge in Concourse B at Frankfurt Airport following the opening of an exclusive First Class Spa on the premises.

Lufthansa has defied tough market conditions by raising its forecasts for the full-year 2008, as lower fuel prices and cost reductions offset weakening demand.The German carrier said it would post a full-year operating profit of around 1.3 billion euros (US$1.7 billion), compared with its previous expectation of 1.1 billion, thanks to a stronger-than-expected fourth quarter.