Approval conditional on compliance with remedies (Il Sole 24 Ore Radiocor) - Brussels, 03 Jul - The European Commission said that it has approved the proposed acquisition of joint control of the Italian operator ITA Airways by the German airline Lufthansa and the Italian Ministry of Economy and Finance (MEF).

The approval is conditional upon full compliance with the remedies offered by Lufthansa and the MEF.

Following its investigation, the commission said that it had concerns that the transaction, as initially notified, would have reduced competition on a certain number of short-haul routes connecting Italy with countries in Central Europe through non-stop and one-stop flights.

It was also concerned about reduced competition on a limited number of long-haul routes between Italy and the US and Canada.

To address the commission's competition concerns, Lufthansa and the MEF submitted a remedy package.

For short-haul routes, Lufthansa and the MEF will make available to one or two rival airlines the necessary assets to enable them to start non-stop flights between Rome or Milan and certain airports in Central Europe, it said.

Lufthansa and the MEF will also ensure that one of those rival airlines will have access to ITA's domestic network to offer indirect connections between certain airports in Central Europe and certain Italian cities other than Rome and Milan.

Regarding long-haul routes, the "merged company will enter into agreements with rivals to improve their competitiveness on the long-haul routes of concern, for instance through interlining agreements or slot swaps," it added.

Lufthansa and MEF also will transfer take-off and landing slots at Milan's Linate airport to the remedy takers for the short-haul routes, the commission said.

"Pursuant to the commitments, Lufthansa and the MEF can only implement the transaction following the Commission's approval of suitable remedy takers for each of the short-haul, long-haul and Milan Linate commitments," it said.

The commission concluded that the transaction, "as modified by the commitments, would no longer raise competition concerns. The decision is conditional upon full compliance with the commitments.".

AAA-Web

(RADIOCOR) 03-07-24 13:01:34 (0341) 5 NNNN