EU approves Lufthansa-ITA Airways merger remedies

The European Commission has approved, under the EU Merger Regulation, EasyJet Airline Company PLC (ESYJY), International Airlines Group (ICAGY) and Air France-KLM S.A. (AFLYY) as suitable remedy takers under the commitments made by Lufthansa AG (DLAKY) and the Italian Ministry of Economy and Finance in order to acquire joint control over ITA Airways. The approval of suitable remedy takers is a condition for Lufthansa and the MEF to implement the transaction. In July 2024, the Commission approved the acquisition of joint control of ITA by Lufthansa and the MEF, conditional upon full compliance with a remedy package submitted by Lufthansa and the MEF consisting of: Commitments for short-haul routes: Lufthansa and the MEF had to 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. They also had to ensure that one of those rival airlines would 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. Commitments for long-haul routes: Lufthansa and the MEF had to enter into agreements with rivals to improve their competitiveness on the long-haul routes of concern between Italy and North America, for instance through interlining agreements or slot swaps. This would lead to increased frequencies of non-stop flights and/or improved connections for one-stop flights on each of the routes. Commitments for Milan Linate airport: Lufthansa and MEF also had to transfer take-off and landing slots at Linate airport to the remedy taker(s) for the short-haul routes to address competition concerns at the airport. 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.