Negotiation with Brussels

Ita, Lufthansa and Mef extend flight cuts offered to EU for divestment start

Proposed relinquishment of up to 17 slot pairs at Linate and ten at Rome

Ita, Turicchi: “Fiducioso su operazione con Lufthansa”

3' min read

3' min read

Lufthansa and the Ministry of Economy have proposed new sacrifices to the EU to save the agreement to sell the Italian company to the German carrier. In the never-ending correspondence between Rome, Frankfurt and Brussels, a new letter with further cuts in flights and routes has been issued to appease the firmness of the Competition Commissioner, Margrethe Vestager.

The problem of Linate

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The hottest chapter in the confrontation with the EU antitrust authority concerns flights to Europe from Milan Linate. In the latest 'remedy offer' package, i.e., the offer of sacrifices, Lufthansa as buyer and the Mef as seller - confirm authoritative sources familiar with the dossier - declare themselves willing to sacrifice at least 15-17 daily slot pairs held by Ita at the Milan airport, i.e., 15-17 pairs of hourly windows entitling them to make 15-17 landings and as many take-offs, or from 30 to 34 aircraft movements. The Mef has made no official statement.

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The cut is 10% of daily air movements

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Previously, Lufthansa together with the Mef had put on the negotiating table a reduction of 11 slot pairs at Ita, entitling 11 landings and the same number of take-offs, i.e. 22 air movements, corresponding to 11 daily frequencies from the Milan airport. This is therefore a 50 per cent increase in the sacrifices offered, corresponding to about 10 per cent of the maximum daily air movements allowed at Linate. Traffic at the airport is restricted and no more than 18 movements per hour are allowed.

Sacrifices at Fiumicino

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Some sacrifices are also expected at Rome Fiumicino. According to rumours, Lufthansa and Mef would give up around ten slot pairs at Italy's main airport. At Rome there is no congestion problem as at Linate, but overlapping slots between the two companies would be eliminated.

Flights to Germany, Austria, Switzerland and Belgium

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The space that would be freed up by giving up these slots would be used to open up to competitors the routes between Italy and central Europe, in particular from Linate and Rome to Germany, Austria, Switzerland and Belgium, i.e. the countries where Lufthansa is dominant either directly or through its subsidiaries Austrian, Swiss, Sn Brussels.

Volotea and easyJet take over

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Brussels has demanded that, in addition to freeing up slots, Lufthansa and Ita should identify competitors to take over the routes vacated by giving up slots. For this, preliminary agreements have already been signed by Ita with Volotea and easyJet, while according to rumours also Hungary's Wizz Air could enter.

Intercontinental flights

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The latest proposal also mentions long-haul, another sore point. The EU considers the Ita-Lufthansa concentration to be dominant because the Italian company's flights to North America would be added to those of Lufthansa's A++ transatlantic joint venture with United Airlines and Air Canada. The German carrier and Mef confirm the proposal to keep Ita's transatlantic activities separate from those of the jv between Lufthansa and Allied, for two years. "No more than two years, otherwise Ita would suffer very serious damage," said a source familiar with the dossier.

Chords "spacing"

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Furthermore, for long-haul there are 'interline' commercial agreements to allow Lufthansa's major competitors, Air France-Klm, British Airways and Iberia, to connect flights from Italy with long-haul flights from their hubs. For example, Ba could make a single ticket for a passenger going from Italy to Washington, via London, an alternative to a flight with Lufthansa via Frankfurt. Or Iberia for a passenger from Italy to South America, via Madrid.

Ita convenes unions

Meanwhile, Ita Airways convened the trade unions for a meeting on 11 June at 14:30.

Brussels decision by 4 July

"We are still discussing how to remedy the competition problems" caused by the Ita-Lufthansa transaction, "as we do in every case", Commissioner Vestager said. "When there are competition problems it is because there is a risk that consumers will have to pay higher prices or not have the same choice they might want. The discussion is going on and we have not reached any conclusions yet". The twice-delayed EU decision is expected by 4 July.

Increase traffic

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The CEO of Aeroporti di Roma, Marco Troncone, said that traffic to the capital is growing strongly: 'The summer season is going extremely well. Rome confirms itself as a very attractive and magnetic market on a global level. We are still experiencing remarkable growth of 20% compared to last summer season, which was a very successful season. We are the fastest growing airport in Europe, which once again testifies to Rome's strong attraction capacity. We expect growth in the medium and long term due to the recovery of the emerging markets, especially those in Asia'.

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  • Gianni Dragoni

    Gianni DragoniCaporedattore, inviato

    Luogo: Roma

    Lingue parlate: italiano, inglese, francese

    Argomenti: economia, finanza, industria aerospazio, difesa, industria ferroviaria, trasporto aereo, grandi aziende pubbliche, privatizzazioni, bilanci società di calcio, stipendi manager, governance società quotate, conflitti d'interesse

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