This is what emerged from indiscretions leaked by an Italian government source, reported by the newspaper la Repubblica.
The article states that in the last days of last week there was an exchange of confidential letters between the EU Commission and Lufthansa, in view of the final decision and ruling of Brussels on the partnership. Due to the onset of a hardening of positions, this could postpone the process until November and December 2024.
Not Lost in Translation
In a meeting with the European Commission, Lufthansa airline representatives reportedly made the following statement (translated from Italian):
“We will renounce from ITA if your conditions are too excessive.”
The ITA acquisition deal requires approval from the European Commission’s competition authority which has entered into a Phase II in-depth investigation. In its preliminary announcement in January, the Commission underlined several critical issues regarding the acquisition, which will lead to Lufthansa’s eventual takeover of the Italian national carrier.
The European Commission believes the acquisition “may reduce competition in the market for passenger air transport services on several short-haul and long-haul routes.” Routes between Italy and North America, specifically services to the US and Canada, would be particularly affected. In addition, long-haul flights to Japan and India also pose part of the Commission’s preliminary concerns. Other issues include ITA and Lufthansa’s potentially dominant position at Milan-Linate airport.
The European Commission initially had until June 6, 2024, to submit its decision on Lufthansa’s plan to acquire a 41% stake in ITA, which may be delayed now until the end of this year.
ITA Pushes Forward
In anticipation of the intense operational activity planned during the summer season, with the increase in routes and frequencies expected, ITA has started selections to hire 475 people. The airline should complete the hiring of 90 pilots and 330 flight attendants by May, according to what was reported by the Roman newspaper il Messaggero.
ITA is also in discussions with some banks and financial institutions which are proceeding quickly to find investments aimed at purchasing new proprietary aircraft as envisaged in the industrial plan comprised of a fleet of 96 aircraft by the end of the year.
ITA and Lufthansa Affair in Troubled Waters
SOURCE: ITA – Lufthansa Operation at Risk of Failure BY: eTurboNews | eTN
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