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ITA-Airways (3): Brussels' last constraint

The European Competition Commission is already circulating a draft agreement

The green light from the European Competition Commission, led by Margrethe Vestager, on the marriage between the airlines Lufthansa and ITA Airways, would be conditional on the acceptance of some technical provisions by Brussels. Meanwhile, the official green light for the privatization of the Italian airline should arrive in the next few days, ahead of the deadline set for 4 July. 

The latest package of remedies recently sent by the Italian Government and the German airline seems to have satisfied the European antitrust, which now no longer sees the risk that the ITA-Lufthansa merger would create dominant positions and monopolies on some routes and airports. 

At the moment, the European Competition Commission is already circulating a draft agreement between the offices of the various commissioners involved in the operation, to gather any ideas or opposition. The condition to be accepted for the green light from Brussels concerns the long-haul Europe-North America routes on which there is a dual option: leaving the destinations in the hands of ITA to a competitor company; or replace ITA's current direct connection with a flight with a stopover at a European Lufthansa hub airport. 

The agreement provides for Lufthansa to acquire 41% of ITA Airways for 325 million euros, through a capital increase of the Italian airline. Subsequently, the Germans plan to acquire 90% of the Italian flag carrier, through a total investment estimated at 829 million. Sticking to the money issue, a further 240 million in financing is on the way for the purchase of proprietary aircraft: the goal is to have a fleet of 96 aircraft by the end of 2024. 

On the same topic, see also the article published by AVIONEWS.

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AVIONEWS - World Aeronautical Press Agency