the EU asks for further sacrifices

The Minister of Economy Giancarlo Giorgetti and the European Commissioner for Competition Margrethe Vestager they had an hour of “frank, cordial and constructive” conversation about the wedding proposal between Ita Airways And Lufthansa. But Brussels expects other sacrifices on the table before giving the green light to the high-altitude union, worried that the new reality could become so dominant in some markets as to damage consumer interest. This is the outcome of the political meeting that followed dozens of technical summits.

The face to face

In the face to face – anticipated by Courier – “Minister Giorgetti underlined the importance of the Commission respecting the timing of the decision to guarantee a positive future for the Italian airline, its workers and travellers”, explains the Ministry of Economy in a note. “The parties – continues the Treasury – will submit, in due time, some further remedies, to respond to the concerns raised by the commission, including the issue of some routes”.

Insufficient remedies

For the EU Antitrust, the package of sacrifices that Ita and Lufthansa have sent in recent days to resolve the issues regarding slots, short and long-haul routes and the dominant position at Milan Linate airport is therefore not entirely sufficient. Even if the negotiations – it is reported – are moving towards a “positive trajectory”, the sending of a third package of remedies could postpone the deadline for the EU judgment on the wedding (set for 6 June) by about twenty days, barring further surprises.

Criticalities

Brussels continues to underline the critical issues on 39 routes (between Italy and Germany, Switzerland, Belgium, Austria, United States, Canada, Japan) and asks for a cut in slots at Linate where together Ita and Lufthansa would have almost 2/3 of the take-off and landing rights in an airport that is not only “clogged”, but also preferred by premium customers, i.e. those willing to pay higher fares to move to and from the Milan city airport.

 
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