Green light for Lufthansa's entry into ITA. Agreement operational from November: what will change at Linate and on the Atlantic

The July 3 It was supposed to be the day of truth, and it was. The ministry of economy and finance (as a shareholder of ITA Airways) and Lufthansa Group, In the presence of Minister Giancarlo Giorgetti and Lufthansa Group CEO Carsten Spohr, have communicated the green light granted by European antitrust to German group's entry into Italian company.

Participation, as specified now for a year, will be from the 41%, in 'exchange' for 325 million to be paid to ITA in the form of a capital increase for the Italian carrier. The Germans may also proceed with further share acquisitions, up to 100%, but they cannot do so before 2025 and will have to do so by 2033.

The pact will come Effectively sealed by the end of 2024, likely next November. From that time its 'consequences' will become effective.

First, Germans will express CEO (which in all likelihood I will be Joerg Eberhart, who was previously CEO of Air Dolomiti. and therefore knows Italy and the Italian market well), as well as Two of the five members of the board of directors.

On the passenger side, the networks of ITA and the four companies that already form the Lufthansa Group (Lufthansa, Swiss, Austian Airlines and Brussels Airlines) will be further supplemented, with codeshare on all flights. The 2.3 million Members of ITA's loyalty program, Volare, they will be able Earn or spend points by flying with any of the five airlines, which are all united by the Miles & More program.

And, likely In the first half of 2025, ITA will join the Star Alliance, after leaving Skyteam.

The seven-month negotiation between the two companies and the European antitrust commission led to some constraints that ITA and the Lufthansa Group will have to meet. One of these concerns Milan's Linate airport, where the EU commissioners found a dominant position of the LH/AZ duo. Therefore, will have to 'quit' 15/17 slot pairs (30-34 connections) on Milan city airport, which will be made available to competing companies, including. in pole position low-cost easyjet.

 

 

A dominant position was also found relative to the Connections between Italy, Germany, Austria, Switzerland and Belgium: for this, "to one or two competing companies - reads the note illustrated in Rome - Will go the necessary assets to enable them to start non-stop connections between Rome and Milan and some central European airports." For a minimum period of three years.

On long range, on the other hand, the post-merger company will "stipulate agreements with competitors to improve their competitiveness on routes for which there are antitrust concerns, e.g. through interlining agreements. In the crosshairs, in particular, are. Four routes between Italy and 4 North American cities: Toronto, San Francisco, Washington and Chicago.

In North America, the pact (as approved by the EU) provides for. the entry of an Ita-Lufthansa competitor capable of offering direct flights or, alternatively, of two vectors already in place - such as rivals Air France, Iberia, British Airlines, Klm, or Tap-which will be able to operate connections with a stopover at their European hubs, but guaranteeing competitive prices and that the trip will not take longer in total than 3 hours compared to direct crossings.

Rome and Frankfurt will have time until November to seal agreements with competing airlines and bring their presence at some airports in line with antitrust dictates, after which the pact can be signed and become operational. It has not been determined when ITA will be allowed to join the transatlantic joint venture which Lufthansa forms with North American United Airlines to Air Canada.

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