The European Union believes that a merger between the two airlines would not violate antitrust rules.
ADVERTISEMENTThe German airline Lufthansa obtained European Union approval on Wednesday to acquire a 41% stake in the Italian state-owned company ITA Airways.
This operation of 325 million euros will allow Lufthansa to expand its services in Italy, one of the largest travel markets in Europe.
If ITA’s financial performance improves, Lufthansa has the opportunity to become a full owner.
The Commission’s verdict that the merger does not threaten fair competition ends months of uncertainty surrounding the deal.
“At a time when consumers are faced with increasingly high prices for air travel, it is very important to preserve competition in the sector,” said Margrethe VestagerExecutive Vice-President of the European Union in charge of competition policy.
“We needed to avoid passengers ending up paying more or benefiting from fewer and lower quality air transport services on certain routes to and from Italy. The set of remedies proposed by Lufthansa and the Italian Ministry of Finance, in the context of this cross-border transaction, fully addresses our competition concerns,” she said.
A conditional entry into the capital
In order to gain EU approval, Lufthansa and ITA agreed to offer their rivals some short-haul routes in Italy, allowing them to launch non-stop flights between Rome or Milan and some central European airports.
The German company confirmed that it is in talks with Easyjet and the Spanish company Volotea.
As for long-haul flights, Lufthansa and ITA have also agreed to work with their competitors to improve connections and increase the frequency of non-stop flights. The airlines will cooperate on the transfer of passengers and baggage between connecting flights and will also exchange take-off and landing slots with other airlines.
After many delays, the merger is a positive step for the government of Giorgia Meloniwhich seeks to protect state coffers by privatizing a number of public companies.
However, the Commission will not be able to conclude the transaction until competing airlines have agreed to benefit from the anti-competitive measures.
Some analysts point out that the ITA will be a heavy burden for Lufthansa, despite its access to the fare market, as the airline has not been profitable for decades.
Lufthansa already has a number of subsidiaries, including Brussels Airlines, Austrian Airlines and Swiss International Air Lines.
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