From Milan-Brussels to Rome-New York, Ita and Lufthansa's 39 routes in the crosshairs of the EU Commission
Requests for corrections from Brussels for 26 short-haul and 13 long-haul routes: Milan-Brussels, connections between Rome and New York, Washington, San Francisco, Chicago, Toronto, Los Angeles, Tokyo, Miami
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There are 39 air routes operated directly or indirectly by Ita Airways and Lufthansa that have ended up in the European Commission's crosshairs because they may restrict competition. In the Statement of Objections, the document with the findings sent by DG Competition to the MEF (as sole shareholder of Ita) and to the German group, 26 short-haul and 13 long-haul routes are listed. The critical points include the Milan-Linate airport where the agreement between the two groups could strengthen Ita's dominant position by making it more difficult for competitors to provide passenger air transport services. The two companies can submit remedies to DG Competition in Brussels until 26 April.
The 12 short-haul routes to be reviewed
The first list of 12 short-haul routes includes connections between Milan and Brussels, Düsseldorf, Frankfurt, Hamburg, Stuttgart and Vienna. Then there are the connections between Rome and Brussels, Frankfurt, Munich, Zurich, Hamburg and Vienna. In addition, 14 other short-haul routes 'involve direct-indirect overlaps where the parties compete closely'. This list includes the routes between Bari and Frankfurt, Hamburg, Munich, the routes between Brindisi and Düsseldorf, Stuttgart, the routes between Cagliari and Munich, between Catania and Frankfurt, between Lamezia and Zurich, between Naples and Düsseldorf, Frankfurt, Stuttgart, Hamburg, between Palermo and Frankfurt, between Rome and Stuttgart.
In the document, the European Commission points out that the cartel between the two groups reduces competition on these short-haul routes connecting Italy with central European countries. On these routes, Lufthansa and Ita 'compete head-to-head mainly with direct flights, but also with indirect flights'. Competition on these routes 'seems limited and comes mainly from low-cost carriers, such as Ryanair, which in many cases operate from more remote airports'.
The 8 long haul routes at risk
Then there are 8 long-haul routes, for which at least one of the parties operates direct connections: the list includes connections between Rome and New York, Washington, San Francisco, Chicago, Toronto, Los Angeles, Tokyo, Miami. Finally, there are 5 routes between Italy and North America for which none of the parties provides a direct connection: these are the Naples-New York connection (winter season only), Milan-San Francisco and the connections to New York from Florence, Catania and Bologna.
The European Commission's call is to reduce competition on a number of long-haul routes between Italy and the United States, Canada and Japan, where Ita, Lufthansa and its joint venture partners 'compete head-to-head with direct or indirect flights'. Competition from other airlines 'appears insufficient on these routes'. In its assessment, the Commission considers the activities of Ita, Lufthansa and its joint venture partners as those of a single entity after the merger. As is well known, Lufthansa and Ita operate an extensive route network from their respective hubs in Austria, Belgium, Germany, Switzerland and Italy. Lufthansa has joint ventures with United Airlines and Air Canada for transatlantic routes and with All Nippon Airways for routes to Japan.
