EU Approves Remedies for Lufthansa’s Entry into Ita Airways

The European Commission has approved the package of measures proposed by the Italian Ministry of Economy and Lufthansa for the entry of the German group into Ita Airways. According to Corriere della Sera, the decision still needs to be formalized in writing.

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Brussels is awaiting the final document detailing the commitments made by the involved parties but is satisfied with the preliminary version submitted recently. The decision on the operation, initially expected by July 4th, could be brought forward.

«I think we will get married, but anything can happen,» commented Minister of Economy Giancarlo Giorgetti during an event in Cremona. «The bride and the witnesses are summoned, but Don Abbondio of the situation might not show up,» he joked, referring to the intense negotiations and some disagreements between Rome and Brussels. «In the last few days, we have worked very intensely. The date is set, the spouses and witnesses are summoned, but anything can happen.»

The measures proposed by the Ministry of Economy and Lufthansa are considered «adequate» because they address the EU Antitrust concerns in three critical areas following the merger: an excessive market share at Milan Linate Airport, a monopoly situation on several short-haul routes (between Italy and Germany, Austria, Switzerland, Belgium), and a reduction in competition on connections between Italy and North America.

To address the excessive presence at Milan Linate Airport, at least 15-17 pairs of slots (equivalent to 30-34 daily flights in both directions), more than the 11 pairs currently held by the entire Lufthansa group, have been proposed for sale.

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On the short-haul routes where the Ita-Lufthansa union could create a monopoly, a competitor airline approved by the European Commission will enter the market, with easyJet being the primary candidate. Additionally, this airline could open new connections.

Reaction of the Unions

«The news circulating about the EU’s approval for the acquisition of a stake in Ita, conditioned on the implementation of certain measures necessary to ensure market balance, is excellent news,» commented Anpac, the national professional association of civil aviation.

«We have always believed that the partnership with the Lufthansa group was the best solution to ensure the presence in Italy of a leading company that allows us to intercept incoming tourist flows and the mobility of citizens globally. Now it is a matter of completing the industrial plan by maximizing development and employment levels.»