It does not receive public funding
Editor in chief:

Facebook Twitter Youtube Instagram LinkedIn

ITA-Lufthansa: what are the obstacles

German group has sent list of remedies to marry ITA to Brussels

It's a decisive day for the fate of the national carrier ITA Airways. Today the German aviation group Lufthansa, about to acquire 41% of the Italian airline, will send to Brussels the list of remedies it is ready to make. The aim is to obtain the green light for the marriage from the European Competition Commission, led by Margrethe Vestager. According to rumors, we are moving towards a temporary rejection of the proposal.

Two problems hinder Brussels' authorization: airport slots at Milan-Linate airport and some intercontinental flights. Lufthansa's proposals, agreed with the Italian Ministry of Economy and Finance (MEF) which is the sole shareholder of ITA, aim to respond to the objections of the European antitrust, according to which the ITA-Lufthansa marriage generates some monopolies on specific segments of the airline market.

These are the effects deemed "negative" for the market by the European Commission: first of all, Brussels fears that the ITA-Lufthansa marriage will create dominant positions at the Italian "Enrico Forlanini" airport of Milan-Linate; as well as on 39 short, medium and long-haul routes; and third, it foresees an increase in ticket prices on some routes where there is a shortage of competing airlines.

At the moment, according to press rumors, there is no agreement between ITA-Lufthansa and Brussels on the three points, despite the fact that the two betrothed have announced the renunciation of 22 airport slots in Milan. In case of rejection, the future of ITA would be at risk: involving the fleet expansion (rise to 100 aircraft by the end of 2024), the hiring of staff (currently only 475 seasonal aircraft are planned), the budget (the airline is not entirely autonomous in the market). The Eu Commission is expected to make its decision on 13 June, after the European elections.

On the same topic, see also the article published by AVIONEWS.

Gic - 1258130

AVIONEWS - World Aeronautical Press Agency