The European Commission has given final approval to Lufthansa’s acquisition of a 41% stake in Italy’s ITA Airways, following the approval of a package of remedies aimed at addressing competition concerns.
The deal, worth 325 million euros, will allow Lufthansa to expand its presence in the Southern European market while meeting antitrust requirements.
The remedy package includes the allocation of slots and routes to competing airlines. EasyJet has gained access to slots at Milan Linate airport, along with the rights to operate further short-haul routes. For long-haul routes, Lufthansa has reached agreements with IAG (the parent company of British Airways and Iberia) and Air France-KLM, allowing these carriers to expand services from Italy to destinations such as the United States.
The Commission confirmed that the persons who have taken corrective measures meet its criteria of independence from Lufthansa and ITA whilst presenting themselves as viable competitors. EasyJet has already announced its intention to open new bases in Rome Fiumicino and Milan Linate to take advantage of these new opportunities.
Lufthansa expects to finalize the acquisition of the 41% stake by early 2025, with an option to take full ownership of ITA in the future. ITA Airways, the successor to failed Alitalia, is expected to leave the SkyTeam alliance and join the Lufthansa-led Star Alliance once the capital investment is completed. This transition would align ITA more closely with Lufthansa group airlines, such as Swiss, Austrian and Brussels Airlines.
The approval comes almost a year after the proposal was first notified to the European Commission, following an in-depth investigation into its competitive impact.