Reports indicate Lufthansa – ITA deal close to approval

Press reports today indicate that Lufthansa is likely to obtain anti-trust approval for its acquisition of a stake in the state-owned Italian airline ITA, sources said on Thursday.  While the EC has not made a final decision, the outlook is positive for approval after the Commission and airlines agreed on a series of remedies to avoid anti-competitive problems.

Lufthansa is looking to acquire a 41% interest in ITA, which is the successor to Alitalia, to boost its market presence in the Mediterranean market and key Italian markets.  After initial denials, Lufthansa returned to the bargaining table with concessions, after spending millions of Euros into Alitalia over the years.