The merger between Ita Airways and Lufthansa has finally been completed. This was confirmed by the European Commission, which gave the green light to the operation that would gradually bring the Italian company under the control of the German company. Four hours after the end of his natural term, the outgoing EU executive approved the plan to tackle critical problems in the skies that could harm other companies by generating excess power. “Competitors easyJet, Air France and Iag are absolutely independent of Ita and Lufthansa and have the financial resources, proven competence and incentives to act as active competitive forces,” the Commission said.
Remedies determined by the European Commission
The remedies identified concern three areas in particular where a merger between the two companies would be extremely damaging to competition: short-haul flights from Rome and Milan to some airports in Central Europe, such as Brussels; long-distance routes to North America; Landing and take-off rights (slots) from Milan Linate airport. EasyJet is the company tasked with implementing these solutions on short-haul flights and Linate slots; Iag and AirFrance-Klm for long-haul flights. According to the Commission, there does not appear to be any risk to competition or delay in the implementation of remedies.
Finally, the agreements made by Lufthansa and MEF with the three companies are suitable for the implementation of the proposed solutions. With today’s green light, the transaction can be completed. The approval comes exactly a year after Lufthansa and the Ministry of Economy (which will sell 41 percent of Ita) reported the operation to technical offices in Brussels.
Giorgetti: “I’m satisfied, let’s look at the last kilometer”
Minister of Economy Giancarlo Giorgetti does not hide his satisfaction: “After Monte dei Paschi di Siena, we also see the finish line of Ita. We are happy with this new stage, now we need to go to the last kilometer.” “. The Lufthansa Group also “welcomes this authorization from the EU Commission as it represents an important milestone in the merger and acquisition process towards the successful acquisition of ITA Airways”, we read in a note.
Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
