COLOGNE (dpa-AFX) - The European Commission on Wednesday approved the
proposed acquisition of joint control of ITA Airways by Deutsche Lufthansa AG
(DLAKF, DLAKY) and the Italian Ministry of Economy and Finance or MEF.

The approval is conditional upon full compliance with the remedies offered by
Lufthansa and the MEF.

The Commission had concerns on reduced competition on a certain number of
short-haul routes connecting Italy with countries in Central Europe and reduced
competition on a limited number of long-haul routes between Italy and the US and
Canada. It also creates or strengthens ITA's dominant position at the
Milan-Linate airport.

The approval is based on a remedy package submitted by Lufthansa and the MEF.
Lufthansa and the MEF will make available to one or two rival airlines the
necessary assets to enable them to start non-stop flights between Rome or Milan
and certain airports in Central Europe.

The merged company will enter into agreements with rivals to improve their
competitiveness on the long-haul routes of concern, for instance through
interlining agreements or slot swaps.

Lufthansa and MEF will also transfer take-off and landing slots at Linate
airport to the remedy takers for the short-haul routes.

The commission said Lufthansa and the MEF can only implement the transaction
following the Commission's approval of suitable remedy takers for each of the
short-haul, long-haul and Milan Linate commitments. The Commission will assess
the suitability of remedy takers in the context of a separate buyer approval
procedure.

On January 23, 2024, the Commission opened an investigation to assess if
Lufthansa's acquisition of a stake in ITA may restrict competition on certain
routes in the market for passenger air transport services in and out of Italy.

The Commission is concerned that customers may face increased prices or
decreased quality of services after the transaction.



Copyright(c) 2024 RTTNews.com. All Rights Reserved

Copyright RTT News/dpa-AFX