A concrete step was taken after months of discussions. The Ministry of Economy e Lufthansa have notified theEU antitrust the joint operation for the relaunch of Ita Airways. This was confirmed by a note from the Italian Treasury and a spokesperson for the German carrier.
The operation involves the entry of Deutsche Lufthansa into Italia Trasporto Aereo Spa (the public company that manages Ita) through a capital increase from 325 million of Euro for 41%, then go up to 100%. The total investment will be 829 million. At the beginning on the board of directors of Ita a 5, the Mef will have three members (including the president), Lufthansa two: the CEO and another councilor.
Difficult negotiations with the Antitrust
Negotiations with the Competition Directorate have been difficult mainly due to the large market share that the Lufthansa group already holds on some of the main European routes. The news of the notification implicitly means that a first compromise has been found. According to a source cited by the Reuters agency, among the remedies proposed to the European Antitrust is the transfer by Lufthansa of some slots from Milanese airports. A slot is a “slot” with permission to land and take off at an airport.
Il Lufthansa group today it already controls SWISS, Austrian Airlines and Brussels Airlines with three global hubs (Frankfurt, Munich and Zurich) and two national hubs (Vienna and Brussels). Added to these are also the regional airlines Lufthansa CityLine, Air Dolomiti and Eurowings Discover, the group's airline
What happens now
The notification constitutes the first key step, after which the 25 days of "phase 1" begin within which the EU Directorate General for Competition will have to analyze the documentation of over 600 pages. “The provisional deadline for the decision in “phase 1” is 15 January 2024,” a European Commission spokeswoman said. At the end, the EU Antitrust can authorize the merger or request further investigations, bringing the dossier to "phase 2" which implies another 90 days with a possible extension of 15-20 days.
Precisely in this second phase some sacrifices may be required, such as the sale of slots at Milan Linate airport or the divestment of non-core activities. Once approval is received, Ita Airways and Lufthansa will immediately begin commercial and operational collaboration.
