Merger of Ita and Lufthansa on Hold: Addressing Concerns over Market Dominance at Milan Linate Airport
The European Union has yet to make a final decision on the sale of Ita to Lufthansa, with the postponement of the decision until July 4th. Lufthansa recently sent a corrective offer to the European Commission that it describes as significantly improved, in response to concerns raised by the Commission regarding short and long-haul flights, as well as concentration at Milan Linate airport.
The dispute at the heart of this merger is over potential market dominance that Lufthansa may have on certain routes, particularly those from Milan city airport. Lufthansa already owns Austrian, Brussels Airlines, Swiss, and Eurowings. Low-cost carriers like Ryanair and EasyJet are interested in potential slot transfers at Fiumicino and Linate airports. The CEO of Lufthansa, Carsten Spohr, is optimistic about the merger, highlighting benefits for consumers, Ita, Lufthansa and increased competition in the Italian market.
However, Ryanair’s CEO Michael O’Leary sees this merger as necessary for Ita’s sustainability. The Vice President of the European Commission Margrethe Vestager warns that serious competition problems must be resolved before approving this transaction. Ita’s president Antonino Turicchi believes they have addressed these concerns and hopes for approval soon.
Meanwhile, various websites provide information related to online gaming and entertainment as stakeholders closely watch this complex situation unfold.
