Merger Between Ita and Lufthansa on Hold: Addressing Competition Concerns at the Heart of Dispute

The European Union has postponed its final decision on the sale of Ita to Lufthansa until July 4th. Lufthansa recently sent a corrective offer to the European Commission that it describes as significantly improved. This offer is in response to concerns raised by the Commission regarding short and long-haul flights, as well as concentration at Milan Linate airport. The Commission will now take time to analyze the proposals presented.

The merger between Ita and Lufthansa is at the center of a dispute over potential market dominance by Lufthansa on certain routes, especially those from Milan city airport. Low-cost carriers like Ryanair and EasyJet are interested in potential slot transfers at Fiumicino and Linate airports. The CEO of Lufthansa, Carsten Spohr, is optimistic about the merger, highlighting benefits for consumers, Ita, Lufthansa, and increased competition in the Italian market. However, Ryanair’s CEO Michael O’Leary sees this move as necessary for Ita’s sustainability.

The Vice President of the European Commission Margrethe Vestager warns that serious competition problems must be resolved for the transaction to be approved. Ita’s president Antonino Turicchi believes they have addressed these concerns and is hopeful for approval. As stakeholders closely monitor developments related to online gaming and entertainment websites are also featured in this content providing information on related topics.

This complex situation highlights the need for careful consideration of market dynamics before approving any major acquisitions or mergers.