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The EU is ready to approve Lufthansa’s takeover of loss-making Italian carrier ITA Airways despite antitrust concerns

Posted on by darion

The EU’s antitrust watchdog is set to approve Lufthansa’s proposed takeover of loss-making Italian flag carrier ITA Airways after the German airline group reportedly submitted new concession documentation in response to competition concerns raised by the Commission.

Lufthansa has been trying to take a stake in ITA Airways for more than two years after Prime Minister Giorgia Meloni put Alitalia’s state-controlled successor up for sale in February 2022 as part of a broader project to strengthen the country’s finances.

After long negotiations, Lufthansa finally finalized the transaction of acquiring an initial 41% stake in ITA Airways in May last year. The airline group will then consider increasing this share at some point in the future.

But as of May 2023, the deal has been stuck in the quagmire of an antitrust investigation by European regulators, who are increasingly concerned about the extent of airline consolidation across the continent.

The Lufthansa Group already has a significant presence in Germany, Austria, Belgium and Switzerland, and the initial set of countermeasures proposed by the airline to address EU concerns were quickly rejected by regulators.

In particular, the EU highlighted three areas in which the proposed merger threatens competition: the reduction of competition on short-haul routes between Italy and Central Europe, the restriction of competition on long-haul routes between Italy and the United States, Canada and Japan, and the strengthening of ITA’s dominant position at Milan Linate Airport .

Sources say Lufthansa has now presented its final proposed package of measures to address these concerns. Regulators have until July 4 to formally approve the package, although the decision currently appears to be tilting in Lufthansa’s favor.

Lufthansa has indicated it will not offer any further concessions to approve the deal and could potentially walk away from ITA Airways if regulators remain unhappy with the airline group’s proposal.

Matt’s shot

The airline merger has certainly been a long and drawn out one, so it’s no surprise that Lufthansa is quickly running out of patience and ready to walk away if it can’t close the deal quickly.

It is certainly the case that ITA Airways needs Lufthansa more than Lufthansa needs the Italian carrier, and even if Lufthansa convinces European regulators to approve the takeover, it will have to cut work to cut costs for the loss-making airline.

In addition to the Lufthansa and ITA Airways deal, the European Commission is also examining the proposed takeover of Air Europa by the IAG Group.

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Mateusz Maszczyński


Mateusz Maszczyński improved his skills as an international stewardess at the most famous airline in the Middle East and flew throughout the Covid-19 pandemic for a well-known European airline. Matt is passionate about the aviation industry and has become an expert in passenger experience and human-centered stories. Always keeping his eyes on the ground, Matt’s industry insights, analysis and reporting are often relied upon by some of the biggest names in journalism.