BRUSSELS (Reuters) – Lufthansa’s acquisition of a minority stake in Italian rival ITA Airways could harm competition and lead to higher prices, the European Commission said on Monday.
Lufthansa wants to acquire a 41% stake in ITA, the former Alitalia, for 325 million euros as part of a capital increase.
The European Commission, responsible for ensuring the proper application of competition regulations, considers the operation threatens competition on short-haul routes between Italy and the countries of Central Europe, as well as on long-haul routes. -mail between Italy and the United States, Canada and Japan.
It would also strengthen ITA’s dominant position at Milan’s main airport.
This statement confirms information published by Reuters earlier this month.
Lufthansa and the Italian government can propose new remedies to address Brussels’ concerns by April 26.
Lufthansa had proposed corrective measures during the EU’s preliminary review of the transaction, but these were rejected because they failed to allay regulators’ fears.
This operation once again highlights attempts to consolidate the airline sector. IAG, owner of British Airways and Iberia, is also seeking to buy the Spanish airline Air Europa, on which Brussels must give its opinion before July 15.
(Reporting by Foo Yun Chee and Inti Landauro, French version Diana Mandiá, editing by Kate Entringer)
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