Ita Airways and Lufthansa, Brussels decision postponed to 4 July
Before the deadline expired, the Mef and the German group's top management sent a package of measures to the EU Commission, which fears the merger will have a negative impact on competition
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The negotiation for the entry of Lufthansa with a minority stake in the capital of Ita Airways is now in full swing. Mef and Lufthansa worked on a new package involving the cutting of routes, with the aim of meeting the deadline set by the European Commission for 4am on 6 May.
It is Milan Linate and some 20 connections that are being negotiated, thus a smaller number than the 39 routes in the crosshairs of the Statement of objections notified on 25 March by Brussels, which fears a restriction of competition from the marriage between Ita and Lufthansa, with a negative impact on the fares paid by consumers and other companies.
The shareholder of Ita Airways - the Mef confirmed - submitted together with Lufthansa DLH the additions to the remedies within the deadline communicated to the Commission in order to get the green light by June.
Brussels decision postponed to 4 July
But having received the final proposal, the European Commission has postponed to 4 July (compared to the previous deadline of 13 June) the pronouncement on the acquisition of 41% of Ita Airways by Lufthansa with an investment of 325 million euros. At Linate the proposal is for a reduction of 11 pairs of slots (22 round-trip flights) that will be able to go to another airline (EasyJet is in pole position) and to other companies on the waiting list. All this against the risk feared by the EU Commission that Ita's dominant position in the Milan Linate airport would be 'created or strengthened'.
Routes in the crosshairs of Brussels
The Competition DG's objections in March targeted 26 short-haul routes connecting Italy with central European countries (Germany, Austria, Switzerland and Belgium) where, according to the EU Commission, 'Lufthansa and Ita compete head-to-head with direct flights, but also with indirect flights'. Now the number of routes 'at risk' would be halved and focused on Linate and Fiumicino airports (excluding connections from other cities). Ita Airways is considered a 'heavyweight' by the EU Commission because it is evaluated together with Lufthansa and the network with Swiss, Austrian Airlines, Brussels Airlines and Eurowings and Air Dolomiti. What is new, it would seem, is that the Commission is reconsidering in the game the role of Ryanair which, although operating from more remote airports, is a major competitor (it is the leading company in Italy in terms of passenger numbers).
