Lufthansa, ITA Airways deal might damage competitors, EU antitrust watchdog says

BRUSSELS: Lufthansa’s bid for a minority stake in Italian rival ITA Airways might hurt competitors and result in larger costs, EU antitrust regulators stated on Monday, ramping up strain on the German provider to provide you with stronger cures. The European Fee stated the deal threatens competitors on short-haul routes between Italy and Central European international locations, in addition to on long-haul routes between Italy and the US, Canada and Japan.It might additionally strengthens ITA’s dominant place at Milan’s essential airport. The European Fee set out its issues in a press release of objections to Lufthansa, confirming a Reuters story earlier this month. Lufthansa and the Italian authorities can now put ahead new cures. The deal underscores the wave of consolidation within the airline trade, with British Airways-owner IAG looking for to purchase out Spanish airline Air Europa. Lufthansa desires to purchase a 41% stake within the state-owned Italian rival for 325 million euros ($351.46 million) as a part of a capital enhance.

#Lufthansa #ITA #Airways #deal #damage #competitors #antitrust #watchdog

Leave a Reply