Lufthansa and Italy's administration foresee an accord regarding Lufthansa's involvement in ITA Airways.
Lufthansa and Italy's government are hopeful for the EU Commission's approval of Lufthansa's acquisition of ITA Airways, following recent discussions. As Carsten Spohr, CEO of Lufthansa, said to "Zeit" newspaper, "We're stayin' positive that we'll sort somethin' out with the Commission soon, workin' in our favor and promotin' competition in Italy." The negotiations, which nearly fell apart multiple times, are allegedly at an advanced stage.
Italy's Economy and Finance Ministry also shared optimism Tuesday evening. "We addressed the EU Commission's latest concerns today and expect this to allow Lufthansa to get a stake in ITA Airways in a reasonable amount of time," Italy's government announced. Preparations are already underway to meet the agreed-upon conditions with the Commission, "so the deal can be wrapped up in the comin' months."
EU Commissioner Margrethe Vestager is reportedly leaning towards approving Lufthansa's purchase of an initial 41% of ITA, according to Reuters sources last week. In the future, ITA Airways successor is expected to become completely integrated within the Lufthansa Group. The EU aims to prevent the merger from leading to decreased competition and higher airfares, harmful to customers, through the conditions. The decision is anticipated by July 4.
Among the conditions is the relinquishment of around 40 take-off and landing slots (Slots) for European connections at Milan Linate Airport, where Lufthansa/ITA might have a market monopoly. Lufthansa must make it possible for rival airlines, Easyjet and Volotea, to use the slots for their flight fleets as well. Previously unknown details, such as the airlines and numbers, were confirmed by Spohr in the interview without specification.
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After the negotiations between Lufthansa and Italy's government, the EU Commission's approval of Lufthansa's acquisition of ITA Airways is awaited. If the agreement is reached, Lufthansa will gain access to ITA's operations, potentially leading to a larger market share for Lufthansa Airways. The government's optimism comes after addressing the EU Commission's concerns regarding competition and airfare. Following the finalization of the agreement, Lufthansa will be required to relinquish certain take-off and landing slots at Milan Linate Airport to facilitate access for rival airlines.
