The European Commission approved on Wednesday Lufthansa AG's stake in ITA Airways, subject to several conditions. The Commission objected to the deal in March, raising concerns about competition among European airlines. Following an in-depth investigation, the Commission conceded that the two airlines' routes are "to a significant extent complementary" and that ITA's future would be "highly uncertain" if the transaction was not approved.
However, the Commission also found the deal would result in reduced competition on some short- and long-haul flights, as well as give ITA a dominant position at the Milan-Linate airport. It proposed measures that Lufthansa and ITA's other majority stakeholder, the Italian Economy Ministry, must employ to increase competitiveness before the transaction can be completed. The Commission will also appoint an independent trustee to oversee the implementation of the measures.
