The EU’s interests in the ITA and Lufthansa merger

The European Commission has expressed concerns about the acquisition of joint control of Ita Airways by Lufthansa and the Mef, warning that competition on some routes in the market for passenger air transport services in and out of Italy could be restricted as a result. The Commission is worried that customers may face higher prices or reduced quality of services post-transaction.

The Commission’s specific concerns relate to short-haul routes connecting Italy with Central Europe, where Lufthansa and Ita compete directly with low-cost carriers such as Ryanair. Additionally, on long-haul routes between Italy and the United States, Canada, and Japan, the Commission believes that competition from other airlines is insufficient. It considers Ita, Lufthansa, and its partners as a single entity after the merger.

Of particular concern is Ita’s dominant position at Milan-Linate airport, which could make it challenging for competitors to provide air passenger transport services to and from that location. The Commission emphasizes that its goal is to prevent negative effects on customers, whether consumers or businesses, in terms of increased costs or decreased quality of services.

Lufthansa and Mef now have the opportunity to respond to the Commission’s statement of objections, examine the Commission’s findings, request a hearing, and propose solutions to address the competition concerns. The companies can submit remedies at any point until the appeal deadline of April 26, 2024. The Commission’s issuance of a Statement of Objections is a formal step in the investigation process and does not predetermine the outcome.

By Aiden Johnson

As a content writer at newspoip.com, I have a passion for crafting engaging and informative articles that captivate readers. With a keen eye for detail and a knack for storytelling, I strive to deliver content that not only informs but also entertains. My goal is to create compelling narratives that resonate with our audience and keep them coming back for more. Whether I'm delving into the latest news topics or exploring in-depth features, I am dedicated to producing high-quality content that informs, inspires, and sparks curiosity.

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