The long-awaited approval for the merger between Ita Airways and Lufthansa has been given by the European authorities. This agreement, which involved Lufthansa acquiring a 41% stake in Ita Airways through a capital increase of 325 million euros, will eventually lead to Lufthansa owning 100% of the new company by 2033 with a total investment of 829 million euros. Lufthansa will play a significant role in the management of Ita Airways, with the CEO of Lufthansa, Carsten Spohr, and other executives taking on key positions within the company. The merger was deemed necessary for the competitiveness of the European aviation market and was subject to approval from the European Commission, with both parties committing to certain remedies to ensure fair competition.
The European Commission approved the merger of Ita Airways and Lufthansa after the two companies agreed to a series of commitments to address competition concerns. These commitments included measures to support competition on short-haul routes, long-haul routes, and at Milan Linate airport. Lufthansa and the Italian government will transfer take-off and landing slots at Milan Linate airport to competitors as part of the remedies. These commitments were considered satisfactory by the European Commission, which will monitor their implementation through an independent trustee. The merger is contingent on the full compliance with these commitments.
The union between Ita Airways and Lufthansa is seen as a positive development by the trade union Fit-Cisl, which hopes that the merger will lead to the consolidation and expansion of job opportunities within the aviation industry in Italy. The union anticipates the hiring of over 2,200 employees across various sectors such as ground staff, maintenance, pilots, and flight attendants. Fit-Cisl also emphasizes the need for strategic discussions between the Ministry of Infrastructure and Transport, Lufthansa, and employee representatives to address operational challenges and opportunities within the new company. Additionally, the union raises concerns about the potential impact of rising fuel costs and environmental regulations on the competitiveness of European airlines compared to non-European carriers.
The approval of the Ita Airways-Lufthansa merger marks a significant milestone in the restructuring of the Italian aviation industry, with both parties committing to a long-term partnership. The European Commission’s decision to approve the merger was based on the companies’ willingness to address competition concerns through various remedies. The involvement of Lufthansa in the management of Ita Airways is expected to bring about operational efficiencies and strategic advantages for both companies. Moving forward, the focus will be on implementing the agreed commitments and ensuring that the merger benefits the employees, consumers, and the aviation market as a whole.
With the merger now approved by European authorities, Ita Airways and Lufthansa are poised to strengthen their position in the global aviation market. The alliance between these two major airlines will create new opportunities for growth and competition, ensuring that the Italian aviation industry remains competitive on a global scale. By adhering to the commitments made to address competition concerns, Ita Airways and Lufthansa are paving the way for a successful integration that will benefit all stakeholders involved. As the aviation industry continues to evolve and face new challenges, this merger represents a strategic move towards ensuring a sustainable and competitive future for both companies.
As the Ita Airways-Lufthansa merger progresses, it will be essential for all parties involved to work together to address operational, regulatory, and market challenges. By prioritizing collaboration, innovation, and long-term sustainability, Ita Airways and Lufthansa can navigate the complexities of the aviation industry and emerge as stronger, more competitive players in the global market. With a focus on preserving jobs, enhancing service offerings, and driving operational efficiency, the merged entity can capitalize on the strengths of both companies to deliver value to customers, employees, and shareholders alike. Through effective communication, strategic planning, and a shared commitment to excellence, Ita Airways and Lufthansa can build a successful and sustainable partnership that will shape the future of the European aviation industry.
