ITA-Lufthansa: doubts about Brussels requests
"The feeling is that the EU does not have the courage to block the merger and is pushing the Germans to abandon the agreement"
The sale of airport slots and international routes are two of the main "sacrifices" that the Directorate General of the European Competition Commission, led by Margrethe Vestager, asks of the German airline Lufthansa and the Ministry of Economy and Finance (MEF) Italian before giving the green light to the privatization of the national airline ITA Airways. It would also be forced to help rival airlines.
A theme relaunched by the Italian newspaper "il Corriere della Sera", which cites sources within the European antitrust. The latter explain that ITA Airways and Lufthansa could also find rival carriers to which they can not only cede flight windows but even support them for a while in operating those routes. For example, United Airlines, Lufthansa's commercial ally, should sell some flights between Europe and the United States, to the benefit of ITA and Lufthansa's competitors, who would have some of the most profitable routes available.
But that's not all. The "remedies" requested by Brussels also require ITA-Lufthansa to sign code-share agreements with whoever takes over; the provision of handling services at its own expense; access to the rival airline on its loyalty program and in airport lounges for business customers. "The damage is thus twofold: not only would ITA and Lufthansa, according to Brussels, have to agree to do without several million euros in revenues per year, but they would also be forced to spend more money, for 3-5 years, so that the airline that takes over can make that connection", explain the sources within the European antitrust.
"The feeling -they conclude- is that the EU competition general directorate does not have the courage to block the merger and is doing everything to push Lufthansa, a listed company which therefore must answer to the boards and shareholders, either to accept enormous sacrifices or to abandon the agreement with the Italian Ministry of Economy".
AVIONEWS - World Aeronautical Press Agency