Lufthansa's ITA Airways Purchase Under Investigation By European Commission

On November 30th, 2023, Germany's Lufthansa informed the European Commission of its intention to purchase part of Italy's revived national airline, ITA Airways. The European aviation market is already dominated by airline groups like Air France-KLM and the International Airlines Group. Of course, Lufthansa Group is a major player as well- the conglomerate, in addition to holding Lufthansa airlines, also owns Brussels Airlines, Austrian Airlines and SWISS, among others.
Indeed, it’s the airline group's dominant presence over the continent's aviation industry worries the European Commission, especially in Italy's desperation for a strong, financially stable, independent national carrier.
Article: simpleflying.com/why-eu-comis...
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[@danielf.285]

Tbh i think that alitalias branding had waay more charme than ITA imho

[@ambergris5705]

100%, the blue just makes it confusing to non avgeeks

[@theaviator_7678]

Too bad it couldn’t work out deals with the Air France-KLM group, considering they are smaller than Lufthansa Group and is a part of SkyTeam, there was a real potential for the group to grow

[@heidirabenau511]

AF-KLM is purchasing a 20% stake in SAS.

[@johniii8147]

@@heidirabenau511 Likely a better move for them ITA is a mess

[@jasonherrera5901]

Agreed aswell with Air Europa which is being sold to IAG to be merged with Iberia

[@davidwebb4904]

Italy’s national carrier is Ryanair.

[@abdulbari7809]

No Ryanair is kf Ireland

[@RenatoSacchi]

@@abdulbari7809 Don't you understand the irony?

[@DCTag]

@@abdulbari7809you don’t understand

[@Chris_Taru]

@@abdulbari7809 a remarkable level of immunity to humor

[@abdulbari7809]

@@RenatoSacchi ohhh you ment it in that way

[@schnitzelsemmel]

As Lufthansa is also on track to acquire TAP, there could also be certain South American and African routes that would increase Lufthansa's global competitiveness but decrease intra-European competition between Italy, Portugal and Germany/Austria/Switzerland.

[@ivargarmarkdvik4499]

Isnt AF-KL leading the race for TAP? It makes more sense for TAP to be acquired by them than LH group, as TAP has been and is treated the same way as SAS in *A. If you are in *A and not being LH, AC og UA, you can forget transatlantic JVs for example

[@gteixeira]

Nobody thinks on Lufthansa or ITA if they are expecting competitiveness. If people are going for the cheap, they go for RyanAir or EasyJet. And if you buy full service, RyanAir still is cheaper and has a similar service as the high-fare airlines.

[@AviatorChina55]

I think this is reasonable and ridiculous at the same time. It could increase the size of Lufthansa further, increasing income, but on ITA’s side, the airline is a very growing airline, so the idea of selling a crucial national air carrier is a bit crazy. However, using Lufthansa’s method of “grouping international airlines,” this could make Germany a very successful country based on air travel.

[@ondrejkonopasek9363]

Bro; hold your horses. Its not "crucial national air carrier". Its italian airline, and Italians have proven so many times they are just not good at operatin an airline.

[@AviatorChina55]

Sorry mate, let me correct that.

[@caiuscosades6423]

​@@ondrejkonopasek9363 The only decent Italian airline is Air Dolomiti and that airline is Lufthansa's bottom bitch

[@coyotelong4349]

I think ITA should be given a chance to grow, as it is currently doing Lufthansa Group is already big enough in Europe. I applaud the EC for holding up this purchase

[@italianstallion399]

Yes if history has told me anything it's that large bureaucracies holding up the decisions of corporations is super productive and good for consumers. That's why Europe's share of wealth has decreased over the last 50 years.

[@th8257]

​@@italianstallion399it's because countries like India and China have developed, you moron

[@ambergris5705]

To be honest, I wouldn't be worried about diminished competition (low cost carriers would seize the vacant competition spot), but more about what it means for Italy's domestic aviation. Milan is already congested, sure, but I am not sure Lufthansa would see the potential of Roma Fiumicino: Germany already has so many big cities with airports that have room to grow, I could see Italy being forgotten and Munich or Stuttgart being developed instead. As hubs, they would functionally be the same (serve the same role, the location isn't far enough to make a difference). My hope though is that Lufthansa would see ITA as a stepping stone to conquer the African market, and steal some of Air France, Turkish Airlines and Ethiopian Airlines' market. Knowing the huge potential there is there, and that there is probably enough of the cake for everyone.

[@schnitzelsemmel]

According to German-language aviation blogs, Rome would precisely serve the role you described. Especially Northern and Eastern African markets. Same with TAP which would serve as Lufthansa's connection to Southern America and West Africa.

[@jwil4286]

Steal some of Turkish’s market? You know Lufthansa and Turkish are partners, right?

[@maxeany]

as an italian avgeek I preferred the acquistion of KLM-AF, but I just want some airline that will expand operations in Milan (both LIN and MXP). I also support the EU but I don't like what they're doing here

[@abdulbari7809]

Good Video

[@matthiashartge5520]

I think they should have tried to take over SAS instead of ITA ^^

[@justinkoster4417]

What makes the EC think ITA will survive better on its own then alItalia did. If the deal doesn’t go through I bet ITA will have a lot of the same issues as Alitalia

[@EuropeanRailfanAlt]

There's a problem: The Lufthansa Group is all part of Star Alliance, while ITA is part of SkyTeam.

[@Akislav1990]

Wasn't a problem for the SAS purchase

[@johniii8147]

Nope. That is very easily changed. SAS just did it.

[@dh16dh]

I presume similar investigations will follow for IAG's proposed acquisition of Air Europa, which I can't see going through without major concessions considering IAG's strength in Spain and to Latin America with Iberia, Vuelling and Level as well. Similarly for AF-KLM and SAS which seems less egregious until you consider that the acquisition promises SAS joining the Delta-AF-KLM-Virgin transatlantic JV which will likely come under more scrutiny. ITA Airways needs a similar transatlantic JV to be successful since it can't compete on its own with the three major JV's, and the closure of the Milan Malpensa hub seems indicative of this. Domestically/intra-europe it struggles to compete with the Frecciarossa train network and Ryanair. I can't see the EC approving ITA joining the Star Alliance JV considering that it already contains United, Air Canada, Lufthansa, Austrian, Brussels Airlines, Swiss, and Discover Airlines unless some major concessions occur likely cripling ITA to a smaller feeder airline like Austrian and Brussels Airlines.

[@jwil4286]

Why haven’t they formed a JV with Delta or Areomexico?

[@dh16dh]

​@@jwil4286 When ITA was founded in 2021, it was almost immediately put up for sale so joining any JV's (which requires regulator approval) didn't make sense until the ownership question was settled. Alitalia used to be part of the Delta-AF-KLM JV but was dropped in 2018 but I don't know why.

[@RobEJC]

ITA recently just got stood up and operating (with it's brilliant livery) and now it's for sale?

[@a.gproductions_official]

As much as I want to see the merger go through, I believe the European Commission’s investigation is perfectly reasonable. I would hate to see ridiculous prices on short European routes or increased prices on transatlantic services. But indeed it would be mutually beneficial for Lufthansa and ITA and add competition on certain markets such as the African market which is dominated by Air France-KLM, BA, and Ethiopian. Along with Swiss and Lufthansa, ITA would add competition.

[@user-yc2oz8kc5k]

AZ needs LH like NK needs B6. But it already looks like it may not happen.

[@milimomooya6862]

Your currency is your assesment. 💱

[@saajidazhar1543]

Instead of wasting time w/ ita, reach out to SAS, offer them a good deal, and beg them not to leave star.

[@carlosfurukawa6133]

I like the EU commission. Decrease of competition will increase the prices.

[@AeiKei]

Lufthansa is eager to try and dominate the italian market. They have tried this with Lufthansa Italia a while back (when Alitalia still existed) so this attempted merger is not a surprise at all. I think in the end the EU won't let it happen as it will create a dominant position for Lufthansa in the region

[@wakeupcall2665]

Lufthansa is already dominating the Northern Italian market with VCE, MXP, LIN, VRN, BLQ with Air Dolomiti.

[@chanchan523]

I think it’s the same mess that happened with the air Canada/ air transit merger it will be blocked in the most silly way possible I think the euro competition bureau should have had some say in the west jet / sunwing merger because sungwing was partly owned by the German leisure company TUI but they did nothing and the Canada government approved the west jet/ sunwing merger

[@abdulbari7809]

Damn Lufthansa Rich😂

[@troll4898]

To think that 2020 they were almost gone

[@abdulbari7809]

Yep

[@gerhardma4687]

@@troll4898 BS

[@aviatorb77w]

@@troll4898 since when were they almost gone?? lmao

[@MaxzzzZ2]

wtf!?@@troll4898

[@ce1834]

AnsaldoBreda sold off to Hitachi Rail, their new attempt at a flag carrier being sold to Lufthansa - Italy can't catch a break 💀

[@Capt.OggyPeabodyOfficial]

When Lufthansa acquired ITA Airways this means ITA Airways will become a Star Alliance Member and ultimately leave the SkyTeam Alliance

[@milimomooya6862]

Yahhhh. 💷

[@groovefam]

It is better than the Qataris owning the airline. Europe all the way

[@jwil4286]

I take it you like Star more than oneworld?

[@rudivandoornegat2371]

I wonder why diversity, inclusion and equity are not part of the requirements of this acquisition.

[@EuropeanRailfanAlt]

Because this is not in the USA

[@user-jn5yu8hk6r]

😅😅😅😅😅

[@diegoyuiop]

We're tired of financing Alitalia (or whatever new name they choose)! Sell it, it has cost us much more than enough

[@marklanders6833]

What are you talking about??? _Alitalia_ no longer exists. ITA is a completely new company. Do you get it now?

[@diegoyuiop]

@@marklanders6833 🤣🤣🤣 Sure this is not just a rebranding 😂

[@marklanders6833]

@@diegoyuiop Actually it's _not._

[@marcusholmes7942]

ITA are mediocre at best.

[@marklanders6833]

Just like your mother is mediocre at best.

[@user-se4wd4cm1e]

italia mafia can not provida a airline.

[@raf1651]

Alitalia: Always Late In Take off and landing in Linate International Airport I wonder what they will make of ITA?