The EU Antitrust Authority is expected to announce its approval of the sale of the first package of shares of Ita Airways to Lufthansa tomorrow morning, with some conditions. This comes just one day before the decision deadline set for July 4th. After six months of negotiations involving the Ministry of Economy and Finance, Ita Airways, Lufthansa, and the European Competition Authority led by Margrethe Vestager, reports indicate that a compromise has been reached regarding the sale of slots at Linate airport and restrictions on routes from Fiumicino to North America.
The sale of 41% of Ita Airways to Lufthansa for 325 million euros was agreed upon 14 months ago as a first step towards the carrier’s full acquisition by the German group. The Italian carrier was established three years ago as part of the restructuring of the former Alitalia, which had accumulated significant debts over several decades. The purchase of Ita Airways by Lufthansa provides it with a strong industrial partner, marking a significant step forward in its growth and development.
As part of the agreement, Ita Airways may be barred from joining the joint venture between Lufthansa, United, and Air Canada for North America and could be required to cede a number of slots at Linate airport to promote competition. The purchase of Ita Airways by Lufthansa is seen as a strategic move to strengthen German group’s presence in Italy’s key destination for tourism market. On the other hand, Ita Airways benefits from support from a major player in aviation industry that ensures its continued growth and success.
The Italian domestic aviation market has been expanding rapidly with record numbers passing through Italian airports providing opportunities for carriers like Ita Airways to expand their operations and offer customers more choices for travel. With Lufthansa as its partner, Ita Airways is well-positioned to capitalize on these opportunities and continue growing its market share in Italy’s competitive aviation industry.
