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June 14, 2024
ITA Lufthansa

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The European Commission is re-evaluating a new proposal from ITA and Lufthansa regarding the 41% stake Lufthansa Group is seeking in the Italian carrier, formerly Alitalia. After earlier rejections, the two carriers have proposed additional conditions contained in a revised offer sent earlier this month. Tomorrow, Giancarlo Giorgetti, the Italian Minister of Economy and Finance and Margrethe Vestager, Vice President of the European Commission, will meet face-to-face to resolve issues related to the investment.

The revised proposal submitted by the carriers includes three major elements to respond to EU antitrust concerns. The first is the transfer of airport slots at Milan’s Linate airport to rival airlines, including some low cost carriers. The second is opening to competitors some routes connecting Italy with Central Europe. The third is freezing for two years the alliance on transatlantic routes from Rome Fiumicino to the United States and Canada, leaving ITA and Lufthansa to compete independently.

The carriers propose to cede 24 daily slots at Linate, 12 to easyJet and 12 to Volotea. At Rome Fiumicino, 12-18 slots would be given to Volotea and potentially Ryanair. The international alliance deferral would see Lufthansa competing through code-share alliances with United and Air Canada continuing in competition with ITA. The question now is whether the commission will consider the transactions as adequate to enable the transaction to be completed.

Stay tuned, as we will find out soon.

author avatar
Ernest Arvai
President AirInsight Group LLC

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