Italian Airlines’ Sale to Lufthansa Pushed Back Amid Controversy and Concerns over Market Dominance

The European Commission has put off its final decision on the sale of Ita to Lufthansa until July 4th. This follows a revised offer from Lufthansa, which the airline describes as significantly improved. The offer addresses concerns about short and long-haul flights, as well as concentration at Milan Linate airport. The commission will now analyze the proposals before making a final decision.

The acquisition of Ita by Lufthansa has been met with controversy due to fears of market dominance on certain routes, particularly from Milan airports. Lufthansa already owns several airlines including Austrian, Brussels Airlines, Swiss, and Eurowings. Low-cost carriers such as Ryanair and EasyJet are also interested in potential slot transfers at major Italian airports.

Lufthansa’s CEO, Carsten Spohr, is confident that the merger will be approved by the EU Commission in the summer. He highlights the benefits for consumers, Ita, competition in the Italian market, and Lufthansa itself. However, Ita’s president Antonino Turicchi emphasizes that it will not increase Its market share but instead all slots from the Lufthansa Group will be subject to release.

There are mixed opinions about the merger with some seeing it as necessary for Ita’s financial sustainability while others warn that serious competition problems must be resolved for it to be approved. The final decision on the sale will come after a thorough analysis of the revised offer by Lufthansa.[1]