The European Commission recently approved the ITA Airways and Lufthansa merger, after both companies agreed to make key adjustments. As a result, the deal now includes specific remedies aimed at addressing competition concerns regarding monopolies in certain markets.

Initially, the Commission raised concerns about short-haul routes. Lufthansa and ITA Airways would have controlled flights between Milan, Rome, and several Central European airports. To address this issue, easyJet will expand its operations in Italy. Specifically, it will open new bases at Milan Linate and Rome Fiumicino. Consequently, this expansion will increase competition, offering Italian travelers more options for short-haul flights.

Furthermore, long-haul flights posed another significant concern. The merger would have given Lufthansa and ITA Airways a dominant position on North American routes. To resolve this, the European Commission tasked Air France-KLM and the International Airlines Group (IAG) with maintaining competitiveness on these routes. These airlines will implement interline agreements and slot swaps, thereby improving flight frequency and facilitating better non-stop options from Italy to North America.

In addition, the approval addressed valuable slots at Milan Linate, a key concern raised by the Commission. Lufthansa and ITA Airways will relinquish some of these slots, thereby boosting competition and avoiding monopolistic control over these prime locations.

As a result, easyJet will play an essential role in enhancing competition in the short-haul market. Moreover, with these changes, the merger now complies with EU regulations. Therefore, Lufthansa and ITA Airways will continue to be strong, yet competitive, players in European aviation.

This approval strengthens Lufthansa’s position in Italy. Moreover, easyJet and other competitors will help maintain balance in the air travel market. Ultimately, the agreement will benefit consumers by offering more choices, lowering prices, and ensuring better connectivity between Italy and international destinations.

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