The European Commission has approved after a long period the proposal for the acquisition of 41% of ITA Airways by Lufthansa subject to the implementation of significant changes in slots at the dominant airport of Linate in Milan.
With the implementation of these slot changes Linate airport will reduce the dominance of ITA Airways, due to the location of the airport being closer to Milan than Malpensa and due to the increase in fares which increases their revenues and performance accordingly.
The reduction in the dominance of ITA Airways will bring about the consolidation of Easyjet, IAG and Air France-KLM. In particular, EasyJet will take most of the seats for Linate and Lufthansa on short-haul routes. For British Airways (IAG) and Air France KLM this means that they will be able to offer a better choice of long-haul opportunities through their hubs at London Heathrow, Paris CDG and Amsterdam.
There is no timetable yet for when the new services will be launched.
The Lufthansa-ITA Airways merger started to become official in November 2023 with a proposal for Lufthansa to acquire 41% of ITA Airways, with the European Commission later approving it and it looks like the remaining 59% will be acquired along the way.
The first clearance was given in July 2024, when the Commission agreed to the deal in its entirety, subject to the condition that competition would be eliminated before the German company, Lufthansa, entered the market. However, it was the proposal for corrective slots that made the Commission accept the request on the basis that it would allow for improved times and schedules at the carriers.
All indications are that a total takeover will be a likely scenario in the near term if all goes well and there are no concerns about the deals.
