The European Commission has given the green light for Lufthansa to acquire a 41% stake in ITA Airways, Italy’s national carrier. The deal, valued at €325 million, marks a pivotal step in Lufthansa’s strategy to expand its influence in the European aviation market while addressing competitive concerns raised by regulators.
Details of the Acquisition
Lufthansa’s purchase of the ITA Airways stake comes with significant regulatory commitments designed to maintain fair competition. As part of the agreement, Lufthansa and the Italian Ministry of Economy and Finance, which owns the remaining 59% of ITA, have agreed to implement several remedies:
Slot Transfers: Lufthansa will transfer takeoff and landing slots at Milan Linate Airport to competitors.
Route Access: Increased opportunities will be offered to airlines such as EasyJet, Air France-KLM, and IAG (parent company of British Airways) for key routes from Italy.
Enhanced Connectivity: Measures will facilitate additional short-haul and transatlantic services from Italian airports.
The European Commission emphasized that these conditions ensure the deal does not distort competition or harm consumers.
Strategic Importance
The acquisition strengthens Lufthansa’s position in Southern Europe and aligns with its long-term strategy to dominate the European airline market. ITA Airways, the successor to Alitalia, provides Lufthansa with access to key markets in Italy, one of Europe’s largest aviation hubs. This partnership also allows ITA to leverage Lufthansa’s resources, including its extensive route network and advanced operational capabilities.
Carsten Spohr, Lufthansa’s CEO, stated: “This partnership with ITA Airways allows us to deliver unparalleled connectivity and service for customers traveling to and from Italy, a cornerstone market for Lufthansa Group.”
Competition and Market Implications
The agreement has garnered attention as it positions Lufthansa to compete more effectively with rival groups like Air France-KLM and International Airlines Group. Italy’s aviation market, previously fragmented, is now set for increased stability under Lufthansa’s guidance.
The concessions agreed upon by Lufthansa demonstrate the European Commission’s commitment to fostering a competitive environment. Low-cost carriers like Ryanair and EasyJet are expected to benefit from enhanced access to Milan’s key airport, while long-haul competition on transatlantic routes will also see a boost.
Looking Ahead
The integration of ITA Airways into Lufthansa Group is expected to unfold gradually, with further investments and operational synergies anticipated in the coming years. The partnership is set to enhance Italy’s connectivity to global markets while solidifying Lufthansa’s role as a leader in the European airline industry.
Tickets for ITA Airways flights will soon be available through Lufthansa’s booking platform, reflecting the first step in aligning the two carriers’ operations.
