Ita-Lufthansa, OK for the wedding. Brussels green light for commercial agreements with competitors

The European Commission has given the green light to the 'remedies' presented by Mef, Ita Airways and Lufthansa to prevent competition in some segments of air transport from being damaged by the marriage of the two airlines. It is a decision preparatory to the closing of the transaction for the entry of Lufthansa with a minority stake in the capital of Ita Airways. "After Mps, we see the finishing line for Ita as well,' commented Economy Minister Giancarlo Giorgetti. 'We are satisfied with this new stage, now we have to make the last move. Ita Airways also welcomes with "satisfaction the final approval by the European Commission's Competition Directorate General of the operation for the sale of the shareholding by the Ministry of the Economy to Deutsche Lufthansa A.G." and announces that the company will "continue to work in support of the Ministry of the Economy in view of the closing of the operation"..

In order to approve the entry of the Germans into the capital of Ita Airways, the European Commission had made it a condition that competition be ensured through agreements with other airlines. Responding to the demands of DG Competition at the beginning of November Mef, Ita Airways and Lufthansa signed commercial agreements with competing companies, so-called remedy takers.

In particular, 30 daily slots at Linate airport and about ten intra-European routes that the two companies cover directly (such as the connections from Rome to Frankfurt, Munich, Zurich, Brussels and from Linate to Frankfurt and Vienna) go to EasyJet. On routes between Fiumicino and Washington, San Francisco and Toronto, the contracts facilitate indirect connections from other European hubs for Air France KLM and Iag.

For the EU Commission, as stated in the Brussels report, EasyJet, Iag and Air France KLM are 'fit to remedy' because they fulfil the relevant criteria of 'independence from Lufthansa, MEF and Ita; financial resources, proven competence and incentives to act as active and viable competitive forces in competition' and for 'the absence of risks in delaying the implementation of the commitments'.

After the green light from Brussels, the shareholders' meeting can be called for the capital increase reserved for Lufthansa of EUR 325 million for the acquisition of 41% of Ita Airways. The commercial synergies between Ita Airways and Lufthansa's network consisting of Austrian, Brussels Airlines, Eurowings. Swiss. Ita will be able to benefit from numerous synergies, for example in worldwide sales, the Miles & More loyalty programme or the purchase of aircraft and fuel, Italy will become the group's fifth 'domestic market' and the second in Europe (after Germany) in terms of turnover. Rome Fiumicino, which last year was one of two EU airports to receive five stars, will become the Lufthansa group's sixth hub, the southernmost in geographical terms.