Lufthansa has announced its anticipation of receiving approval from the EU to acquire ITA Airways «later this year.» However, the agreement faces multiple obstacles. One of them is the potential delay until after the European Parliament elections in June. Additionally, the legal issue regarding the employees of the former national airline Alitalia must be resolved. To date, 44 judicial rulings have rejected the reinstatement of 1,094 employees.
Lufthansa has offered 325 million euros to acquire a 41% stake in ITA Airways. These resources are crucial for the Italian airline and will be injected as part of a capital increase. However, the deal has been stalled since January of this year as the European Commission initiated an antitrust investigation. The reason: the fear that this operation could somehow restrict competition, especially in short and long-haul passenger transport. The European authority seeks to determine whether Ita Airways, Lufthansa, United Airlines, and Air Canada should be considered a single entity after the merger.
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«The group is working closely with the European Commission to reach a swift conclusion and subsequent implementation of the transaction,» explained Lufthansa. The German airline expects clarifications from European competition authorities «in the coming weeks.» According to Reuters, Lufthansa is prepared to offer specific solutions to any doubts the Commission may have.
The investigation has a maximum legal deadline of up to 90 days and therefore may extend until June 6, 2024. However, the Commission has the authority to request additional extensions. Nevertheless, Lufthansa hopes to receive initial resolutions by mid-March.
Lufthansa has made it clear that it will withdraw from the operation if the conditions imposed by the EU for the purchase of ITA Airways are excessively restrictive and «the costs outweigh the benefits.» The EU could demand that the German airline relinquish slots, traffic rights, and aircraft to approve the operation.
