Lufthansa Acquires Italian Airlines Shareholding: How the Competition Authority Reached a Compromise on Slot Restrictions
Today, the EU Antitrust Authority is expected to announce approval for the sale of a package of shares in Ita Airways to Lufthansa. This decision comes just one day before the deadline set for July 4th. After six months of negotiations involving the Ministry of Economy and Finance, Ita Airways, Lufthansa, and the European Competition Authority led by Margrethe Vestager, reports indicate that a compromise has been reached regarding slot restrictions at Linate airport and routes from Fiumicino to North America.
Following the announcement from Brussels, Minister of Economy Giancarlo Giorgetti, Ita Airways President Antonino Turicchi, and Lufthansa CEO Carsten Spohr will hold a press conference at the Mef headquarters. It will take a couple of months to finalize the details of the agreement. The sale of 41% of Ita Airways to Lufthansa for 325 million euros was agreed upon 14 months ago as a first step towards full acquisition by the German group.
Ita Airways was established three years ago as part of Alitalia’s restructuring process which resulted in significant debts over several decades. The sale to Lufthansa provides a strong industrial partner for Ita Airways and marks an important step forward in its growth and development. The agreement between Mef and Lufthansa underwent scrutiny from the EU Commission over past six months primarily regarding competition issues surrounding routes from Milan Linate and Fiumicino airports.
As part of this agreement, Ita Airways may be barred from joining a joint venture between Lufthansa, United, and Air Canada for North America routes and could be required to cede some slots at Linate airport to promote competition within Italy’s domestic aviation market. This strategic move strengthens Lufthansa’s presence in Italy – a key destination for tourism – while allowing Ita Airways access to major player support in aviation industry ensuring its continued growth and success in competitive markets worldwide.
