The most delicate dossiers of the Union pass on the desk of Margrethe Vestager, executive vice-president and European Commissioner for Competition. What concerns the marriage between Ita Airways (owned by the Italian Ministry of Economy) and the Lufthansa group – which last November 30th asked for the green light from the Antitrust – is not among the most important from an economic point of view. But it is certainly the most politically sensitive. And the one that causes more than a few headaches in Brussels. «My job is to protect the citizen-consumer», Vestager underlines several times during a chat with the Corriere della Sera.
Are the latest remedies presented by Mef and Lufthansa good for the EU Antitrust? Do they address competition concerns?
«We are still discussing with them. My responsibility in this dossier is that the consumer ultimately still has the possibility of choosing and affordable rates. What we have seen, in some markets, is that this may no longer happen as a result of the Ita-Lufthansa operation. We’ve been talking to companies about how to resolve this, what they need to do. And we are at that stage of the negotiation, which is why there is no conclusion yet.”
In short: you are not satisfied. Do you expect something different from them in terms of sacrifices?
“We are discussing it, that’s the most I can tell you at the moment.”
Has the EU Antitrust changed its approach regarding airline mergers compared to the past?
«Why does he say this?».
For example: you have approved other operations between carriers without many problems in previous years. This time with the Ita-Lufthansa and Iag-Air Europa dossiers you are being more rigid.
«No, no, no. Obviously each case must be seen individually. It depends on several factors. For example: does merging lead to overlap on routes? And if so, does it create a monopoly in that market? In short, it depends. Obviously we also learn from what we have done previously.”
Meaning what?
“One of the things we’ve noticed in past cases is that simply giving away slots at an airport doesn’t really work. If we see that something isn’t working then we need to sit down with companies and try to understand what to do to avoid reducing competition. We ask carriers to be innovative and offer affordable prices. Look at the Korean Air-Asiana case.”
First post-Covid green light in European skies even if from two Asian companies…
«We have foreseen a new type of remedies (transfer of routes and incentives to the taking over carrier, ed). We think they will work. It’s not that we want to be tougher, we want to make sure that the problems that could arise following a merger are resolved.”
Experts, however, maintain that the EU’s hard line on merger operations risks blocking the growth of European airlines, leaving room for American, Middle Eastern and Asian rivals. And therefore the Antitrust should pay more attention to the consequences…
«Yes, obviously there are big airlines elsewhere, but they don’t necessarily operate the same route. You can go from one place to another but you cannot choose to do it with any company in this world, you can only choose among those present in that given territory. If there is no alternative because the merger has led to a monopoly, well then the consumer risks paying a decidedly high price.”
Is there a rethink on sky joint ventures by various regulatory authorities?
“I honestly don’t know, we’ll see in the future.”
There are those who claim that she wants Ita in the arms of Air France-KLM and not Lufthansa.
«But… why do they say this?».
They say you lean a little in favor of the French.
«Noooo, why would I ever? It’s none of my business who wants to join a company. What I have to do is understand what the consequences would be for people who want to fly in terms of prices, where they can go without having to make a stopover and whether they can also choose the day on which they want to fly. Yes, this is my business.”
How confident are you that the Mef-Lufthansa agreement for ITA will get the green light?
«It’s not a question of being confident. This is about finding solutions.”
