The agreement between Ita Airways and Lufthansa would have obtained the green light from the European Commission and according to various press sources the only thing missing is the official announcement on 4 July, thanks however to a large package of concessions made to the Antitrust aimed at guaranteeing fair competition and protecting consumers. After about six months of tough negotiations, the European competition authority accepted the commitments made by Lufthansa and Ita Airways, deeming all the changes made to the original plan for the acquisition of 41% of Ita for 325 million euros satisfactory.
According to community sources cited by Corriere della Sera, the Ministry of Economy and Lufthansa have prepared a set of remedies based on three key aspects: guaranteeing at least one rival carrier on short-haul flights, transferring a suitable package of slots to the Milan Linate and adopt measures to protect Economy travellers, who are particularly sensitive to price changes.
The more significant concessions include the transfer of at least 30-34 daily flights, equivalent to 15-17 slots, at Milan Linate airport, a higher number than those offered initially and also than those held by Lufthansa at the airport, from which it therefore derives in addition to the waiver of Lufthansa, also a reduction in the presence of ITA. This measure was taken to avoid market concentration and prevent price increases by ensuring the presence of at least one other carrier per route on short-haul flights. Among the possible beneficiaries of these slots, easyJet and Volotea are in pole position.
Furthermore, the European Commission had asked Lufthansa to exclude ITA from the alliance with United Airlines and Air Canada, to avoid a dominant position on the profitable routes between Europe and North America. In response, Lufthansa would have proposed to freeze ITA’s entry into the alliance for two years and to open routes to the United States and Canada to competitors. Finally, the two companies would have agreed to reduce short-haul flights between Italy and central Europe, especially to countries such as Austria, Belgium and Germany, where Lufthansa is dominant.
The new remedy package was therefore key to obtaining a positive assessment from the EU, as it directly addresses concerns related to reduced competition on various routes, including long-haul connections to the United States, Canada and Japan. The Minister of Economy Giancarlo Giorgetti confirmed the proximity of the final green light, declaring: “The date is set, the spouses and witnesses have been summoned: at this moment I think we will get married, but anything can happen. This marks the conclusion of a long negotiation which saw numerous complications along the way, but which will ultimately lead to a strategic partnership between the two airlines.”
