EU sources, Ita-Lufthansa verdict to be delayed by a few days

On the Ita-Lufthansa dossier, the European Commission expects new proposals on route cuts before making a decision that, according to Brussels, could be postponed from the 6 June deadline, probably to the second half of June. Yesterday there was an hour-long meeting between Economy Minister Giancarlo Giorgetti and EU Competition Commissioner Margrethe Vestager, which according to the MEF was 'frank, cordial and constructive'. Minister Giorgetti emphasised 'the importance of the European Commission respecting the timing of the decision in order to guarantee a positive future for the Italian airline, its workers and travellers', but the proposal formulated by the Mef and Lufthansa did not seem to satisfy Brussels' Competition DG.

Sources close to the dossier claim that the negotiations are on a 'positive trajectory', Ita and Lufthansa are preparing new corrective measures to cut overlapping routes and respond to the concerns raised by Brussels, which fears that the marriage between the two companies will jeopardise competition on some connections and at the Milanese hub of Linate.

At the centre of the negotiation is the Statement of Objections notified by Brussels' Competition DG on 25 March, to which Mef and Lufthansa responded on 11 April by sending a series of proposals, the so-called 'remedies', to address competition concerns. For the purchase of 41% of Ita Airways, the German group intends to invest 325 million, but Brussels fears that the marriage between the two companies will reduce competition, first of all on a number of short-haul routes connecting Italy with central European countries. Considering the network between Ita and Lufthansa, which includes Swiss, Austrian Airlines, Brussels Airlines and Eurowings, according to the European Commission the competitors are low-cost carriers such as Ryanair, which in many cases operate from more remote airports.

Even on long-haul routes between Italy and the United States, Canada and Japan, Brussels fears that competition will be restricted because it considers Ita, Lufthansa and its joint venture partners as a single entity, including the Star Alliance network and the transatlantic joint venture (there are two, with United Airlines and Air Canada respectively) and between Europe and Japan (with All Nippon Airways). Another reason for the EU Commission's concern is that Ita's dominant position at Milan's Linate airport will be 'created or strengthened'.

The time factor, however, is important: in 2023 Ita Airways reduced its loss to zero and ended the year with 450 million in cash, but any postponement of the decision jeopardises the company's development because, in addition to blocking investment, it does not allow it to exploit the valuable commercial synergies between the airlines.