The European Commission has approved Lufthansa’s acquisition of a 41% stake in ITA Airways for 325 million euros. This approval comes with conditions to address competition concerns on both short-haul and long-haul routes.
To maintain competitive pressure, Lufthansa and ITA Airways will offer assets to rival airlines for non-stop flights between Rome or Milan and Central European airports. They will also grant access to ITA’s network for indirect connections, ensuring a fair playing field.
Concerns about long-haul routes to the US and Canada were addressed through agreements to improve competitiveness, including slot swaps to increase flight frequencies. These measures aim to prevent a reduction in competition due to Lufthansa’s coordination with United Airlines and Air Canada.
At Milan-Linate Airport, Lufthansa and ITA Airways will transfer take-off and landing slots to competitors. This move is designed to support other airlines in establishing a sustainable base and offering new connections between Italy and Central Europe.
Lufthansa’s CEO, Carsten Spohr, highlighted the strategic benefits of the acquisition, including enhanced access to Africa and Latin America through ITA’s Fiumicino hub. He also noted the potential for growth in ITA’s long-haul routes.
The deal, part of broader consolidation efforts in the aviation industry, has positively impacted Lufthansa’s shares, which rose by 2.5% following the announcement. The approval also boosted IAG’s shares by more than 4%, reflecting optimism about its potential takeover of Air Europa.
Lufthansa’s acquisition of ITA Airways underscores the importance of scale in offsetting rising operating costs in the aviation sector. The European Commission’s decision ensures that competition remains robust, benefiting consumers with better prices and services.
