Flights to the US, slots at Linate and Fiumicino. ITA-Lufthansa, where do we stand. And to close there is a new deadline
"I am confident that green light could come as early as this week." This was said at the annual meeting of Iata's [...]
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"I am confident that green light could come as early as this week". This was said at the annual meeting of Iata by the Lufthansa Group CEO Carsten Spohr, on the now more than long-standing issue of the wedding between his company and ITA Airways.
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It was the May 25, 2023 When the two sides reached the agreement that would lead to the to the German company the 41% of the Italian one (with the prospect of going above 50% and up to 90% in later times) and to that of Italy a windfall of 325 million euros.
Since last November, the case has passed into the hands of the European Union's Antitrust. E From there he did not move, sparking protests over the length of the "exam' and concern over whether the operation was actually successful.
Protests further legitimized by the fact that the same Antitrust Authority (which many believe to be 'French traction' has since given the green light for another transaction, that by which Air France/KLM entered the capital of Scandinavian SAS with 20% of the capital. ITA and Lufthansa are in 'good' company, moreover, in the sense that another dossier, that of the wedding between Iberia and Air Europa, has long been lying in the European antitrust drawer.
Yeah, but touching wood and hoping that Spohr's were not just empty words, How far has the 'negotiation' between ITA and Lufthansa on the one hand and the Union's 'competition enforcers' come? Because, for those who still don't know, that's what it's all about: basically, the Antitrust Authority formulates requests to the companies, which respond by accepting them or proposing in turn 'moves' that go to protect competition, and therefore travelers.
The antitrust in turn reviews the companies' proposals and, if they do not fit all or part of them, in turn issues further requests. Which the companies receive and examine, then proceeding with any counter-proposals. And on and on it goes. For the past seven months. With the date of the possible go-ahead that has been announced and then denied on at least a couple of occasions already.
"It is true that the decision is expected on July 4, but I expect the European Commission to actually decide within this week on the case. I think the Italian government and Italian voters expect the opinion before the European elections. I see no reason why the EU Antitrust Authority should not give us clear guidance on the case." Carsten Spohr said again. from Dubai.
On the table there have always been three fundamental issuesi: that of the slots jointly held by Lufthansa and ITA at Milan Linate (which for the Italian company is the secondary hub after Rome Fiumicino), That of flights between Italy, Germany and central Europe, and that of transatlantic connections.
Specifically, in the latest round of requests made to companies, theAntitrust had called for ITA to be left out of the transatlantic joint venture formed by Lufthansa, United and Air Canada. In the crosshairs Of the competition guarantors there would be, in particular, the routes between Europe and Chicago, Washington, San Francisco and Toronto, on which the Lufthansa Group with the addition of ITA and the joint venture with United and Air Canada would dominate the market even more than they do now. The response from Frankfurt and Rome came in a close second with the Counter-proposal to exclude the Italian carrier from the joint venture for the first two years after the agreement is greenlighted.
Also on the long haul, according to a report in Corriere della Sera, ITA and LH allegedly offered economic incentives to Air France-Klm, British Airways and Iberia, in addition to interline agreements to bring passengers to their hubs.
As for the slots on Linate, Treasury let it be known that it agrees relative to the issuance of 11 pairs of landing and takeoff permits (for a total of 22 daily slots), which would be made available to other carriers present at the airport (primarily the low-cost easyjet, but Aeroitalia has also made it known that it wants to be in the game).
But Il Sole 24 Ore wrote a few days ago that. the slot pairs that ITA and Lufthansa would have to give up at Milan City Airport would be many more: 15-17, even, amounting to 30-34 movements (i.e., takeoffs and landings) daily.
Lower sacrifices would have been required about Rome Fiumicino, where Lufthansa and MEF would give up a dozen pairs of slots at Italy's main airport, which would be made available to competitors on European routes.
The deadline for the agreement (but 'last terms' have already expired at least a couple of them) is July 4.o. But Treasury Minister Giancarlo Giorgetti, on June 4, called everyone to speed, explaining that "in my opinion it should have been closed six months ago. Today, tomorrow, the day after tomorrow ... As soon as possible because we have the need to understand what the future of Ita can be."
