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EU Approves Lufthansa's ITA Airways Deal with Conditions to Boost Competition

The European Commission has approved Lufthansa's acquisition of a minority stake in ITA Airways, subject to conditions aimed at enhancing competition in the European aviation market.

The European Commission has given the green light to Lufthansa's acquisition of a 41% stake in ITA Airways, the successor to Alitalia, for 325 million euros. This approval comes with a set of conditions designed to ensure fair competition in the European aviation market. The deal, initially approved in July, is part of Lufthansa's strategy to strengthen its presence in Southern Europe. However, the approval was contingent upon Lufthansa and the Italian Ministry of Economy and Finance (MEF) making commitments to enhance competition.

To address competition concerns, Lufthansa and the MEF have agreed to a package of remedies. These include allowing competitors such as EasyJet, International Airlines Group (IAG), and Air France-KLM to operate more flights from Italy. Specifically, they will transfer take-off and landing slots at Milan's Linate Airport to these competitors, enabling them to start short-haul flights from Rome and Milan to various Central European destinations. Additionally, Lufthansa and the MEF have committed to agreements that will improve the competitiveness of rivals on long-haul routes between Italy and North America. This includes interlining agreements and slot swaps to increase the frequency of non-stop flights and improve connections for one-stop flights.

The European Commission's approval is based on the independence of the rival airlines from Lufthansa and Italy, their track record as viable competitors, and the absence of other competition concerns. This decision is seen as a significant step in maintaining a competitive landscape in the European aviation sector, ensuring that consumers benefit from more choices and better services.

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