The European Union has approved Lufthansa‘s acquisition of a 41% stake in ITA Airways, subject to key concessions, the Handelsblatt reported. This antitrust approval was granted in July, but only after Deutsche Lufthansa agreed to measures designed to ensure fair competition, as confirmed by the EU Commission on Friday, November 29. These measures include providing additional flight connections for rival airlines such as EasyJet, International Airlines Group (IAG) and Air France-KLM. With this, Lufthansa has surmounted the final EU regulatory hurdle for its investment in ITA.
The acquisition, worth €325 million, will give Lufthansa a significant foothold in ITA Airways, the successor to the now-defunct Alitalia. This move aligns with Lufthansa's strategy to bolster its presence in the lucrative southern European market.
As part of the agreement, Lufthansa and Italy's Ministry of Economy and Finance committed to facilitating greater competition. This includes permitting other airlines to operate more short- and long-haul routes from Italy and relinquishing some take-off and landing slots at Milan's Linate airport.
In a subsequent phase, Lufthansa plans to acquire an additional 49% stake in ITA, a transaction expected to cost around €325 million, likely within a few years. (€1.00 = US$1.05 at time of publication).
