The EU has given conditional approval for Lufthansa’s stake in ITA Airways, a deal hailed as a “big European success” by Italy. Lufthansa’s 41% stake in ITA will bolster its presence in Italy and provide more travel options to Africa, South America, and the Middle East. Despite facing regulatory hurdles, Lufthansa and the Italian government made commitments to address competition concerns, paving the way for approval.
The deal includes provisions for rivals to launch non-stop flights between Rome and Milan and central Europe, as well as transferring take-off and landing slots at Milan’s Linate airport to competing airlines. Additional commitments aim to improve competitiveness on long-haul routes between Italy, the United States, and Canada.
Created from the remnants of Alitalia, ITA was established to ensure the Lufthansa deal does not lead to higher prices for consumers. The EU aims to preserve competition in the sector and maintain a high quality of service for passengers.
Overall, the approval of Lufthansa’s stake in ITA Airways marks a significant step towards enhancing competitiveness and options in the European airline industry.