A court in London will hear the LaudaMotion (Vienna) versus Lufthansa Group case regarding the leasing of nine A320 Family aircraft by the German group to the Austrian airline, Air Transport World has reported. The dry-lease contract is set to continue at least through 19 November 2018, the date of the first hearing.

Lufthansa is arguing that LaudaMotion is not paying for the leases, a charge which the Austrian carrier and its parent Ryanair deny.

The German group has repeatedly tried to terminate the contract into which it was forced by the European Commission during the Air Berlin (1991) (Berlin Tegel) takeover process.

The agreement stems from the complicated legal nature of the takeovers happening after Air Berlin's bankruptcy. Lufthansa was, at first, given a tentative nod to take over more assets of its bankrupt domestic rival. However, the Commission imposed a clause in the initial ruling that, should the transaction eventually be blocked in whole or in part, Lufthansa would have to transfer or lease the ex-Air Berlin aircraft to the new owner of Niki without any profit.

Eventually, the Commission cleared Lufthansa to take over most of the German assets of Air Berlin. The Austrian subsidiary of airberlin group, Niki (Austria) was, however, acquired by Niki Lauda after a legal battle and eventually rebranded as LaudaMotion. Using the clause imposed in the initial tentative agreement, LaudaMotion is currently operating five A320-220s and four A321-200s owned by Lufthansa.

At the beginning of the year, Lufthansa filed a lawsuit in the European Court of Justice challenging the clause imposed on it by the Commission.

For its part, Niki Lauda, the founder of LaudaMotion, said that he expected the dry lease to continue through 2021 as agreed in the contract.