The EU’s competition watchdogs are initially blocking Lufthansa’s planned entry into the Italian airline Ita. A preliminary investigation has shown that the merger could reduce competition on some short and long routes, the EU Commission said.
On some routes between Italy and Central European countries, Lufthansa and Ita are in direct competition with each other with non-stop flights. There is only limited competition from other airlines – primarily from low-cost airlines such as Ryanair. However, these would often fly from more remote airports. The EU Commission now has to issue a decision on the procedure by June 6th, according to its information.
Lufthansa had already made concessions in the EU antitrust proceedings, but declined to give details. It was said a few weeks ago that we are in close and constructive communication with everyone involved. When it comes to airline takeovers, the EU Commission usually requires unbundling at airports where the new partners would be particularly strong as a result of the merger.
“The fact that we are losing more time is not a good thing.”
After months of negotiations, the German MDax group agreed with the Italian state at the end of May to take over a minority stake of 41 percent in the airline Ita Airways. To this end, Ita is to receive 325 million euros in equity from Lufthansa cash. In addition, according to the agreement, Lufthansa can take over a further 49 percent of the shares under certain conditions from 2025 onwards, and later also the remaining ten percent.
The deal between Lufthansa and the Italian state has since been subject to competition law reviews at national and European levels. Italy’s Prime Minister Giorgia Meloni has already put pressure on the EU to quickly agree to join the previously state-owned airline Ita Airways. Finance Minister Giancarlo Giorgetti also criticized the lengthy review: “The fact that we are losing more time is not a good thing.”
Italia Trasporto Aereo (Ita), founded in 2020, took over the flight operations of its insolvent predecessor Alitalia in October 2021, but is not its legal successor. However, the new airline has secured take-off and landing rights as well as the Alitalia brand. The legendary name could possibly soon be reactivated again under the new corporate umbrella.