The German group initially plans to acquire 41 percent of the Italian airline with the option to later buy the entire company.
Europe's largest airline can grow even further: Lufthansa wants to buy a stake in the Italian group ITA Airways for 325 million euros. The airline has now received the blessing of the European competition authorities.
The EU Commission had previously expressed concerns that a merger could lead to higher prices. “At a time when consumers are faced with ever-increasing prices for air travel, it is very important to maintain competition in this sector,” said EU Competition Commissioner Margrethe Vestager. However, her authority also concluded: “Without the transaction, the long-term sustainability of ITA as an independent airline would have remained highly uncertain.”
Acquisition subject to conditions
The Commission recently announced that a number of EU Commission requirements now aim to “fully allay the Commission's competition law concerns.”
Lufthansa and the Italian state, as the former owner of ITA Airways, have undertaken to “provide one or two competing airlines with the necessary means to offer direct flights between Rome or Milan and Central European airports,” the Commission said. This is intended to prevent ITA from gaining a “dominant position” in Milan, the commission said.
On long-haul flights from Italy to North America, ITA Airways also has to exchange attractive take-off and landing sites with its competitors. The Commission estimates that the measure could lead to an increase in the number of direct flights on several routes.
Consumer organisation is sceptical
However, the European consumer organisation BEUC warned that the merger could still have negative effects for air travellers. “We fear that consumers could pay the price of this merger in the form of higher airfares, fewer route options and worse services,” said Agustín Reyna, director general of the organisation. He criticised the Commission for not giving in to “political pressure” for mergers of larger companies.
ITA Airways was spun out of the ailing airline Alitalia in 2021. The Italian state had already intervened to save Alitalia from bankruptcy in 2017. The Italian government should therefore also be pleased with the green light from Brussels. Economy Minister Giancarlo Giorgetti spoke in Rome of a “great European success”.
Lufthansa boss Carsten Spohr also called the acquisition “excellent news” for both companies. “ITA Airways will help us to further expand our position as number one in Europe,” Spohr said. Lufthansa will strengthen the Italian airline “and thus secure its future as an international airline.”
pdo/kle (AFP, DPA)