Possible price increases, risk of reduced competition, strong presence a Milan Linate to the detriment of other carriers. These are Europe’s doubts about marriage between Ita Airways and the German Lufthansa. The EU Commission today formalized the preliminary conclusions on the project to acquire joint control of Ita.
In detail, Brussels says it could reduce competition on a number of short-haul routes connecting Italy with central European countries; reduce competition on some long-haul routes between Italy and the United States, Canada and Japan. Or create or strengthen Ita’s dominant position at Milan-Linate airport.
On these routesIta, Lufthansa and its alliance partners Star Alliance with in the field with direct or indirect flights. And precisely on these routes, competition from other airlines “appears insufficient”.
Furthermore, the EU Commission believes that the Italian-German wedding could determine a “dominant position” at Milan-Linate airport. A scenario that “could make it more difficult for competitors to provide passenger air transport services” from this airport, which is certainly strategic due to its proximity to the center of Milan.
In its document, Brussels adds that every year millions of passengers travel from Linate on the routes it disputes, for a total annual expense of over 3 billion euros.
Lufthansa continues its cooperation with the EU
In its note, however, the EU Commission extends an olive branch to Lufthansa. It explains, in fact, that “the routes that give rise to potential concerns represent a small percentage of the total routes and short- and long-haul passengers of both parties (Ita and Lufthansa) and their partners. Furthermore, the potential concerns do not concern the vast majority of routes managed by Ita”.
Lufthansa’s response to the EU was dry: “We are making further progress with our planned investment in Ita Airways. We will analyze the objections presented today by the EU Commission and discuss each single point in detail with the Antitrust Authority and, in the subsequent stages, we will continue to cooperate constructively” with Brussels.
“As suggested by Executive Vice President Margrethe Vestager, we will submit a proposed remedy to the authority in order to address the remaining concerns” by April 26. “We remain confident that the operation will be approved – also because we are convinced that competition in Europe, especially in Italy, can be strengthened by an Ita Airways part of the Lufthansa Group”.