EU Commission to Release Communication on Lufthansa-Ita Merger Amid Monopoly Concerns

Ita and Lufthansa’s marriage set to face challenges in Brussels

EU Commission to Release Communication on Lufthansa-Ita Merger Amid Monopoly Concerns

The EU Commission is set to release new communication regarding the purchase of Ita by Lufthansa, possibly as early as next week. The EU antitrust investigation into this operation, which began on 23 January, is set to conclude on 6 June. There has been discussion around possible objections that could be raised by EU institutions, particularly concerning the potential monopoly position that may be established on certain routes due to Lufthansa’s existing portfolio of airlines.

Ryanair’s CEO, Michael O’Leary, has suggested that the European Commission should approve the operation on the condition that 30% of Fiumicino’s slots are relinquished and distributed among other airlines to ensure real competition. Low-cost carriers have been eagerly waiting to see if Lufthansa and Ita will be required to sell off some valuable slots at major Italian airports, such as Fiumicino and Linate.

The agreement between the Italian Ministry of Economy and Finance (Mef) and Lufthansa for the sale of an initial 41% stake in Ita for 325 million euros was made almost a year ago, in May 2023. The Minister of Economy, Giancarlo Giorgetti, has voiced frustration with the lengthy process and urged the EU institutions to move forward with the approval. Both Lufthansa’s CEO, Carsten Spohr, and the EU Competition Commissioner, Margrethe Vestager, have expressed optimism about the progress of the acquisition despite some delays.

Overall, it remains uncertain how EU institutions will respond to any objections raised by stakeholders and whether they can address concerns around potential monopolies and competition in the European aviation sector.

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