The sale of Ita Airways to Lufthansa has been approved by the EU Antitrust, marking the end of a decades-long operation. This news was reported by Bloomberg and confirmed by EU sources, indicating that Commissioner Margrethe Vestager is inclined to approve the acquisition with certain conditions. Lufthansa made an offer of 325 million euros in May last year to acquire 41% of Ita Airways, which marked the initial step in the sale process.
However, in the past six months, the EU Commission has raised competition concerns, particularly regarding routes departing from Milan Linate and Fiumicino. As Lufthansa already owns several airlines, the acquisition of Ita Airways would further concentrate its routes. Discussions have been ongoing, with potential restrictions on Ita Airways regarding joint ventures and a possible giveaway of slots at Linate to encourage competition.
Lufthansa sees this acquisition as an important move into a market with strong tourist flows outside of domestic markets and the United States. For Ita Airways, partnering with Lufthansa is crucial for ongoing success, especially with government support for the operation. Failing to join one of the largest aviation groups could have negative implications similar to those faced by Alitalia over the decades. The Italian government spent over 10 billion euros between mid-1970s and 2021 trying to prevent Alitalia’s failure.
It is now expected that it will become official in less than twenty days when Commissioner Margrethe Vestager gives her final approval for this major deal in European aviation history. Once finalized, Ita Airways will become part of the third global aviation group and first in Europe – a significant development that will shape air travel across Europe for years to come.