Heightened Scrutiny Over Airline Acquisition
The European Commission is under pressure as antitrust officials scrutinize Lufthansa’s €325 million acquisition of Italy’s ITA Airways. The primary concern revolves around potential price increases and reduced flight options between Italy and central Europe, as well as to the U.S.
Calls for Rapid Approval
Eleven aviation unions from Germany and Italy have urged a swift, favorable decision, highlighting the merger’s potential to enhance competitiveness and job security within Europe’s aviation sector. They argue that this consolidation will counterbalance the burdens imposed by EU environmental laws, Russian sanctions, and uneven market access.
Political Tensions and Economic Implications
Italy’s transport minister, Matteo Salvini, warned that blocking the deal could be seen as a hostile act against Italy. The economics and finance ministry, which is the sole shareholder of ITA, supports the merger to ensure the survival and growth of the national carrier. 
EU’s Position on Market Competition
The European Commission has expressed concerns that the merger could limit competition at Milan’s Linate airport and on long-haul routes to the U.S., Canada, and Japan. To address these concerns, Lufthansa may need to offer remedies such as reducing services to maintain fair competition.
Decision Timeline
With a decision deadline set for July 4, the outcome of this case is politically significant. European Commission President Ursula von der Leyen seeks a second term, and this decision could influence her support from EU leaders, including Italy’s Giorgia Meloni.
Lufthansa’s Confidence
Despite the scrutiny, Lufthansa remains optimistic about receiving approval from the Commission. The company continues to negotiate potential remedies to address antitrust concerns.
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