Ita-Lufthansa, the merger can begin. Giorgetti: "Let’s see the finish line"

The European Commission has approved pursuant to the Regulation on concentrations of the EU, EasyJet, Iag and Air France-Klm as suitable persons entitled to remedies pursuant to the commitments undertaken by Lufthansa and the MEF in order to acquire joint control over Ita. The approval of suitable beneficiaries entitled to remedies – explains the Commission in a note – is a condition for Lufthansa and the Mef to be able to implement the transaction.

In July 2024, the Commission approved the acquisition of joint control of ITA by Lufthansa and the Mef, subject to full compliance with a package of corrective measures presented by Lufthansa and the Mef composed of Commitments for short-haul, long-haul and Linate routes. In detail, for short-haul commitments Lufthansa and the MEF had to make the necessary resources available to one or two rival airlines to allow them to start non-stop flights between Rome or Milan and certain airports in Central Europe.

They also had to ensure that one of these rival airlines had access to Ita’s national network to offer indirect connections between certain central European airports and certain Italian cities other than Rome and Milan.

For long-haul route commitments, Lufthansa and the Mef had to enter into agreements with rivals to improve their competitiveness on the long-haul routes of interest between Italy and North America, for example through interlining agreements or slot swaps. This would have led to higher frequencies of non-stop flights and/or better connections for flights with a stopover on each of the routes. Commitments for Milan Linate airport: Lufthansa and Mef also had to transfer the take-off and landing slots at Linate airport to the entity(ies) providing the remedies for short-haul routes to address competition problems in ‘airport. According to the commitments, Lufthansa and Mef can only implement the transaction after approval by the Commission of suitable entities providing remedies for each of the short-haul, long-haul and Milan Linate commitments.

Lufthansa and MEF have notified the Commission of their choice of EasyJet as the entity providing the remedies for short-haul routes and for the transfer of take-off and landing slots at Milan Linate airport; and IAF and Afklm as providers of remedies for long-haul routes. Lufthansa and Mef have also submitted the relevant proposals for agreements with the parties providing the remedies for the Commission’s approval.

Today, the Commission concluded that EasyJet, IAF and Afklm are eligible taxable persons. In particular, the Commission found that they meet the relevant criteria of independence from Lufthansa, Mef and Ita; financial resources, proven expertise and incentives to act as viable and active competitive forces in competition with Lufthansa and Ita; and no prima facie competitive concerns or risks in delaying implementation of commitments. Furthermore, the Commission concluded that the remedy agreements entered into by Lufthansa and Mef with suitable taxable persons to implement the remedy package are consistent with the commitments. Following today’s approval, Lufthansa and Mef can implement the transaction, the Commission writes.

Giorgetti, “satisfied, let’s see the finish line”

“After MPS we also see the finish line for Ita. We are satisfied with this new stage, now we have to make the last mile”. Thus the Minister of Economy and Finance on the ruling of the DGcomp commission on the Ita Lufthansa dossier.

Lufthansa, “the EU’s approval is an important milestone”

“Today the European Commission gave the unconditional green light to the acquisition of a 41% minority stake in Ita Airways by the Lufthansa Group. In particular, the EU competition authority in Brussels approved the corrective measures presented from Lufthansa and the Italian Ministry of Economy and Finance on 11 November. The Lufthansa Group – we read in a note – welcomes this authorization from the U3 Commission, as it represents an important milestone in the M&A process towards the successful acquisition of ITA Airways. The deal is currently expected to close in early 2025.”

Ita, “we are working towards the closing”

Ita Airways, says in a press release, “welcomes with satisfaction the definitive approval of the Directorate General for Competition of the European Commission of the operation for the sale of the stake in Italia Trasporto Aereo by the Ministry of Economy and Finance to the Deutsche Lufthansa company , pursuant to the Prime Ministerial Decree of 11 February 2022, as amended by the Prime Ministerial Decree of 22 December 2022 on the basis of the remedies agreed upon by the parties, the Company will continue to work support from the Mef in view of the closing of the operation”.