An interview“frank, friendly and constructive” the one that took place today in Brussels between the Minister of Economy and Finance Giancarlo Giorgetti and the competition commissioner Margrethe Vestager. The gradual acquisition project of Eng by the German group Lufthansa: the summit has not yet led to decisive results, even if the negotiations seem to be headed towards one “positive trajectory”. According to what was announced by the Mef, the head of the Treasury emphasized the importance of respect for decision times by the European Commission to ensure a positive future for the Italian airline, as well as its workers and travellers. The parties will submit in due course certain additional remedies to address the concerns raised by the Commission, including the issue of certain routes.
Tomorrow expires the deadline within which Lufthansa and the MEF have the opportunity to submit to the EU Commission “remedies” to the three concerns raised by Vestager. The critical issues they concern competition in the Milan Linate airport, the city airport of the Lombardy capital, as well as on some routes that connect the Bel Paese with Central Europe, North America and Japan. The integration between the two entities could reduce competition on a certain number of short-haul routes connecting Italy with the countries of Central Europe, according to the European executive. Lufthansa and Ita compete head-to-head mainly, with direct flights but also with indirect flights on these routes: “Competition on these routes appears limited and comes mainly from low-cost carriers, such as Ryanair, which in many cases operate from more remote airports”.
But not only. As anticipated, according to the Commission, the integration between the two carriers could reduce competition on a certain number of long-haul routes between Italy and the United States, Canada and Japan. On these routes, the Italian carrier, the German carrier and its partners compete head-to-head with direct and indirect flights. Competition from other companies appears “insufficient”. The ministry and the German group have put forward suggestions solutions in mid-April. In particular, a Lufthansa spokesperson had referred to one“global and constructive solution” to respond to the commission’s concerns about the routes in question and the situation at Milan Linate airport. Furthermore, the draft agreement is perfectly compatible with the economic reality of the highly competitive Italian market.
There expiration to examine the ones already mentioned “remedies” is set for June 6th, but it is not excluded that it may be agreed, with the approval of all the parties involved, a slight extension which can be a maximum of 20 working days. Thus Brussels fronts:“It could even be for a few days but it must be agreed and at the moment the issue has not yet been addressed but all options are on the table. In any case a mini-extension is not unusual in this type of operation”.
The agreement provides for the purchase of 41% of the carrier born from the ashes of Alitalia. The white smoke arrived in May 2023: green light for the sale for 325 million pounds, approximately 346 million dollars.
Under the agreement, the German company could acquire a further 49 percent from 2025 and the remaining 10 percent thereafter.
