The trouble with auctions — and I admit this may be a trigger response to the specific example of cell phone radio spectrum — is that the participants who have mountains of capital will use it to price out competitors and new upstarts.
Lufthansa's interest is piqued. They already price out competitors, they've bought many smaller airlines (even the "national" airlines Swiss and Austria) and operate them at slim to negative margins to keep the workers quiet (the threat of bankruptcy prevents them from rebelling too much)..