• Thu. Jul 4th, 2024

Unresolved Issues of Ita’s Sale to Lufthansa

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Jun 8, 2024

Over the weekend of the vote for the renewal of the EU Parliament, the sale of Alitalia (Ita) to Lufthansa remains a hot topic, fueling political controversy. Members of the League are pressing Brussels for not having reached a decision on the matter yet. The main issues causing delays in the approval of the sale include concerns about routes from Fiumicino to the United States and the entry of Ita Airways into a joint venture with Lufthansa and other airlines. The deadline for Brussels to make a decision has been set for July 4th.

While the issue of routes departing from Linate may be closer to a solution, with the proposal to cede slots to other companies being expanded, concerns about Lufthansa’s ownership of multiple airlines increasing route concentration remain. Low-cost carriers like EasyJet, Ryanair, and WizzAir could be interested in acquiring slots left free by Ita and Lufthansa in Italian airports. Politicians like Matteo Salvini and Giancarlo Giorgetti express frustration with Brussels’ delay in approving the agreement, emphasizing the importance of the deal for Italy and Europe.

Criticism from the opposition highlights concerns about the Northern League’s position on the sale of Ita to Lufthansa. The EU Commissioner for Competition, Margrethe Vestager, explains the process for approving acquisitions, noting that it is rare for the Commission to prohibit a deal. Despite pressure for a decision before the elections, Lufthansa’s CEO, Carsten Spohr, hopes that the EU Commission will make a decision after the elections regarding the agreement signed with Mef in May 2023.

As negotiations continue, Ita has scheduled a meeting with trade unions to discuss the progress of the sale. The outcome of the sale will have significant implications for the future of the airline industry in Italy and Europe, making it a key issue for both political leaders and stakeholders in the aviation sector.

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