Finance
EU approves remedies package required for Lufthansa's ITA deal
Published by Global Banking & Finance Review®
Posted on November 30, 2024
2 min readLast updated: January 28, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 30, 2024
2 min readLast updated: January 28, 2026
The EU approved Lufthansa's acquisition of a 41% stake in ITA Airways, with conditions to increase competition by allowing more routes for EasyJet and others.
BRUSSELS (Reuters) -The European Commission said on Friday it had approved a package of remedies proposed for Lufthansa's acquisition of a minority stake in Italy's ITA Airways, in which EasyJet <EZJ.L>, IAG and Air France-KLM would secure more routes.
Lufthansa won EU antitrust approval in July to buy 41% of state-owned ITA, the successor airline to bankrupt Alitalia, for 325 million euros ($343.6 million), in a deal designed to boost its presence in the lucrative southern European market.
However, Lufthansa and the Italian Ministry of Economy and Finance had to make commitments to allow competitors to take up more short- and long-haul flights from Italy and transfer some take-off and landing slots at Milan's Linate Airport.
The parties committed to make available assets and transfer slots at Linate so that EasyJet could start short-haul flights from Rome and Milan to certain airports in Central Europe.
They also committed to enter into agreements with IAG and Air France-KLM to allow them increased non-stop flights or improved connections for one-stop flights from Italy to North America.
The Commission said it had approved the planned transactions based on the independence of the rival airlines from Lufthansa and Italy, their track record as viable competitors and the lack of other competition concerns.
($1 = 0.9459 euro)
(Reporting by Philip Blenkinsop; Editing by Mark Porter)
The main topic is the EU's approval of Lufthansa's acquisition of a minority stake in ITA Airways, including conditions to increase competition.
Conditions include allowing competitors like EasyJet to gain more routes and transferring slots at Milan's Linate Airport.
Competitors such as EasyJet, IAG, and Air France-KLM benefit from increased routes and improved connections.
Explore more articles in the Finance category
