The European Commission has informed Lufthansa and the Italian Ministry of Economy and Finance (MEF) that their proposed acquisition of joint control of ITA Airways may ‘restrict competition on certain routes in the market for passenger air transport services in and out of Italy’.
The Commission’s preliminary view is that customers ‘may face increased prices or decreased quality of services after the transaction,’ it explained in a statement, following a ‘wide-ranging’ in-depth investigation first opened on January 23 2024.
Particular areas of concern identified by the Commission include the potential for reduced competition on a number of short-haul routes between Italy and Central Europe, with market competition currently appearing ‘limited’. Long-haul routes serving the US, Canada and Japan may also be negatively impacted as ‘competition from other airlines appears insignificant on those routes’. Finally, ITA’s ‘dominant position’ at Milan-Linate airport could also make it harder for rivals to provide services to and from the location.
Lufthansa and MEF now have the opportunity to respond, as well as the chance to submit remedies up until April 26 2024. The Commission has until June 6 2024 to reach its final conclusion.
European Commission objects to Lufthansa’s proposed stake in ITA Airways
