Lufthansa is unlikely to offer more solutions to EU antitrust regulators examining its bid for a stake in the Italian carrier ITA, despite concerns about long-haul flights, according to three sources familiar with the matter. The German airline, looking to purchase 41% of ITA, the successor to Alitalia, has so far submitted three concession offers and has declined to comment.
The latest proposal, made last month, included an offer not to integrate ITA into its joint venture with United Airlines and Air Canada for two years, according to other sources. Since then, the proposal has undergone some adjustments but no major changes, the sources said.
Lufthansa has also proposed to maintain certain competing short-haul routes from ITA to Germany, Belgium, Switzerland, and Austria, and to transfer 40 slots at Milan Linate Airport to easyJet and Volotea. The EU’s concerns focused on the impact of the agreement on both short-haul and long-haul flights, as well as ITA’s dominant position at Milan Linate Airport.
The European Commission, acting as the competition watchdog in the EU, is expected to decide whether to approve or block the deal by the end of the month.