EU greenlights Lufthansa's acquisition of ITA Airways deal

The EU Commission has approved Lufthansa Group's planned 41% acquisition of Italy's ITA Airways for $350.6 million. The transaction is expected to be completed in the fourth quarter of the year. Following the close, ITA will become the fifth network to be closely integrated with Lufthansa Group, while maintaining its brand name. On top of Lufthansa Airlines, the German carrier group also owns Austrian Airlines, Brussels Airlines, Eurowings, and SWISS. ""The approval from Brussels is excellent news for ITA Airways and Lufthansa and especially for all passengers flying to and from Italy,"" said Deutsche Lufthansa CEO Carsten Spohr. He added: ""The decision is also a clear signal for strong air traffic in Europe, which can successfully assert itself in global competition."" Options for the acquisition of the remaining shares in ITA Airways have been agreed between Lufthansa Group and the Italian ministry of economy and finance (MEF) and can be exercised from 2025 at the earliest. Besides its home market in Germany, Lufthansa said Italy is the second most important market for it after the US. It added that in terms of gross domestic product, Italy is the third largest economy in Europe with its strong emphasis on an export economy as well as being a top tourist destination. Spohr told a press conference in Rome that ITA's Fiumicino airport hub gave the group better access to Africa and Latin America and that it had much room for growth, according to Reuters. He read in a statement: ""We will make ITA Airways a strong and successful part of our company and thus secure its future as an international airline and strong brand."" The deal was approved following ""intensive negotiations"" with the European competition authority. Lufthansa had secured the deal after transferring slots at Milan-Linate Airport to a competitor in short-haul traffic. Additional feeder flights from Rome to hubs of European competitors will also ensure improved competition on long-haul routes from Rome to North America. ""The package of remedies proposed by Lufthansa and the MEF on this cross-border deal fully addresses our competition concerns by ensuring that a sufficient level of competitive pressure remains on all relevant routes,"" said EU Commission executive vice president in charge of competition policy Margrethe Vestager. Members of its existing loyalty program Volare will be able to collect or use their miles with the Lufthansa Group's own, Miles & More, after closing. In addition, both Lufthansa and ITA's respective lounges will be mutually accessible. ITA is aiming to join the Star Alliance in the near future. In addition, commercial, purchasing, and IT processes will be harmonised as soon as possible in order to ""exploit the numerous synergy effects"", Lufthansa said. ITA was founded at the end of 2020 and has a modern fleet of 96 Airbus aircraft.