The European Commission has cautioned Lufthansa Group about its planned 41pc acquisition of ITA Airways, expressing concerns that the deal could harm competition, elevate prices, and potentially impact route networks.
Lufthansa Group has indicated its intent to address any remaining concerns by submitting a concept of remedies to the authority, as it aims for a timely approval of the transaction, emphasizing that competition in Europe, particularly in Italy, could be enhanced by integrating ITA Airways into its portfolio.
The commission’s in-depth investigation suggested that the merger might diminish competition on short-haul routes connecting Italy with Central European countries, long-haul routes to the United States, Canada, and Japan, and strengthen ITA’s position at Milan Linate airport.
Lufthansa Group is expected to evaluate the concerns raised by the European Commission and may potentially surrender routes and slots, especially at Milan Linate, with various airlines expressing interest in filling these vacancies. The deadline for Lufthansa Group to propose remedies for approval of the deal is set for April 26.
Europe is also evaluating IAG International Airlines Group’s proposed acquisition of Air Europa.
