Tue. Jun 25th, 2024
Ita and Lufthansa’s marriage set to face challenges in Brussels

The European Union (EU) Commission is set to release new communication in the coming days regarding the purchase of Ita by Lufthansa. The EU antitrust investigation into this operation, which began on 23 January, is set to conclude on 6 June. There has been discussion around possible objections that could be raised by EU institutions, particularly concerning the potential monopoly position that may be established on certain routes due to Lufthansa’s existing portfolio of airlines.

Low-cost carriers have been eagerly waiting to see if Lufthansa and Ita will be required to sell off some valuable slots at major Italian airports, such as Fiumicino and Linate, if the merger is approved. Ryanair’s CEO, Michael O’Leary, suggested that the European Commission should approve the operation on the condition that 30% of Fiumicino’s slots are relinquished and distributed among other airlines to ensure real competition.

The agreement between the Italian Ministry of Economy and Finance (Mef) and Lufthansa for the sale of an initial 41% stake in Ita for 325 million euros was made almost a year ago, in May 2023. The Minister of Economy, Giancarlo Giorgetti, has voiced frustration with the lengthy process and urged the EU institutions to move forward with the approval. Both Lufthansa’s CEO, Carsten Spohr, and the EU Competition Commissioner, Margrethe Vestager, have expressed optimism about the progress of the acquisition, despite some delays.

Overall, it seems like there are concerns around potential monopolies and competition in the European aviation sector.

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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