Fri. Jun 14th, 2024
The EU’s interests in the merger between ITA and Lufthansa

The European Commission has expressed concerns over the acquisition of joint control of Ita Airways by Lufthansa and the Ministry of Economy and Finance (Mef). Specifically, the Commission is worried that this project could limit competition on certain routes in the market for passenger air transport services to and from Italy.

On short-haul routes connecting Italy with Central Europe, Lufthansa and Ita compete directly and indirectly against low-cost carriers like Ryanair. On long-haul routes between Italy and the United States, Canada, and Japan, Ita and Lufthansa operate as a single entity in the Commission’s assessment.

Additionally, Ita’s dominant position at Milan-Linate airport could create obstacles for competitors to offer air passenger transport services to and from the airport. The Commission aims to ensure that this transaction does not negatively affect customers in terms of increased costs or decreased service quality. However, it acknowledges that the concerns related to competition represent a small percentage of the total routes and passengers served by both parties.

The next step in the investigation is the issuance of a Statement of Objections, where the Commission raises specific objections against the companies involved. Lufthansa and Mef have until April 26, 2024 to respond to these objections, review the Commission’s findings, and propose solutions to address competition concerns. They can also submit remedies at any point during this timeframe.

By Aiden Nguyen

As a content writer at newscholarly.com, I delve into the realms of storytelling with the power of words. With a knack for research and a passion for crafting compelling narratives, I strive to bring forth engaging and informative articles for our readers. From decoding complex concepts to unraveling current events, I aim to captivate and educate through the art of writing. Join me on this journey as we explore the ever-evolving landscape of news and knowledge together.

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