The European Union has launched a thorough investigation into Deutsche Lufthansa's acquisition of a minority stake in ITA Airways (formerly known as Alitalia). The deal, according to the European Commission, could potentially harm competition on various short- and long-haul routes involving Italy.
The EU's executive arm stated that the agreement might impede competition on short-haul routes connecting Italy with Central European countries, as well as on several long-haul routes to and from Italy, including destinations such as the U.S., Canada, Japan, and India.
Both Lufthansa and ITA Airways have yet to comment on the matter.
Last year, the German carrier group entered into an agreement with the Italian Ministry of Economy and Finance to acquire a 41% stake in ITA Airways. This move aimed to strengthen Lufthansa's presence in what it referred to as the third-largest airline market in Europe.
Lufthansa committed to inject 325 million euros ($353.7 million) into ITA Airways to secure the stake, while the Italian government pledged an additional EUR250 million for the airline's financing. Furthermore, the deal allows Lufthansa to potentially increase its stake in ITA Airways or even acquire it entirely. The purchase price for ITA Airways is contingent on jointly agreed targets for net debt and earnings.
The European Commission has a timeframe of 90 working days, until June 6, to reach a decision on the matter.
