• Mon. Jun 24th, 2024

EU Concerns over Lufthansa and Mef Acquisition of Ita Airways

BySamantha Jones

Mar 25, 2024
The EU’s interests in the ITA and Lufthansa merger

The European Commission has expressed its concerns over the joint control of Ita Airways acquisition by Lufthansa and Mef. The Commission is worried that competition on some routes in the market for passenger air transport services in and out of Italy could be restricted as a result, leading to higher prices or reduced quality of services for customers post-transaction.

The Commission’s specific concerns relate to short-haul routes connecting Italy with Central Europe, where Lufthansa and Ita compete directly with low-cost carriers such as Ryanair. Additionally, on long-haul routes between Italy and the United States, Canada, and Japan, the Commission believes that competition from other airlines is insufficient. It considers Ita, Lufthansa, and its partners as a single entity after the merger.

Of particular concern is Ita’s dominant position at Milan-Linate airport, which could make it challenging for competitors to provide air passenger transport services to and from that location. The Commission emphasizes that its goal is to prevent negative effects on customers, whether consumers or businesses, in terms of increased costs or decreased quality of services.

Lufthansa and Mef now have the opportunity to respond to the Commission’s statement of objections, examine the Commission’s findings, request a hearing, and propose solutions to address the competition concerns. The companies can submit remedies at any point until the appeal deadline of April 26, 2024. The Commission’s issuance of a Statement of Objections is a formal step in the investigation process and does not predetermine the outcome.

It remains unclear whether Lufthansa and Mef will agree to divest their stake in Ita Airways or find ways to address the competition concerns raised by the European Commission. However, one thing is clear – if they decide not to comply with EU regulations regarding airline acquisitions and mergers

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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