There European Commission has approved, pursuant to EU Merger Regulation, EasyJet, IAG And Air France-KLM as eligible persons entitled to remedies pursuant to the commitments undertaken by Lufthansa and from MEF in order to acquire joint control over ITA. The approval of suitable beneficiaries entitled to remedies – explains the Commission in a note – it is a condition so that Lufthansa and the MEF can implement the transaction.
In July 2024, the Commission approved the acquisition of joint control of ITA on the part of Lufthansa and of MEFsubject to full compliance with a remedy package submitted by Lufthansa and from MEF composed of Commitments for short-haul routeslong range and for Linate.
In detail, for the short-term commitments Lufthansa and the MEF they had to make one or two available rival airlines the resources needed to enable them to start non-stop flights between Rome or Milan and determined Central European airports. They also had to ensure that one of these rival airlines had access to the national network of ITA to offer indirect connections between certain Central European airports and certain Italian cities other than Rome And Milan.
For the commitments for long-haul routes Lufthansa and the MEF they had to enter into agreements with rivals to improve their competitiveness on the long-haul routes of interest between Italy And North Americafor example through agreements interlining or exchanges of slots. This would have led to higher frequencies of non-stop flights and/or better connections for flights with a stopover on each of the routes.
Commitments for Milan Linate airport: Lufthansa And MEF they also had to relocate the take-off and landing slots toLinate airport to the subject(s) who provide the remedies for the short-haul routes to address competition issues inairport. Based on engagements, Lufthansa And MEF they can implement the transaction only after approval by the Commission of suitable subjects who provide the remedies for each of the short-term commitmentslong range and for Milan Linate. (AGI)
Lufthansa And MEF have notified the Commission their choice of EasyJet as the subject who provides the remedies for the short-haul routes and for the transfer of take-off and landing slots toMilan Linate airport; And IAG And AFKL as subjects who provide remedies for the long-haul routes.
Lufthansa And MEF have also submitted for approval Commission the related proposals for agreements with the parties providing the remedies. Today, the Commission concluded that EasyJet, IAG And AFKL taxable persons are eligible.
In particular, the Commission found that they meet the relevant criteria of independence from Lufthansa, MEF And ITA; financial resources, proven expertise and incentives to act as viable and active competitive forces in competition with Lufthansa And ITA; and no worries or risks competition at first sight in delaying the implementation of engagements.
Furthermore, the Commission concluded that the agreements of remedy stipulated by Lufthansa And MEF with suitable taxable persons to implement the remedy package are consistent with the engagements. Following today’s approval, Lufthansa And MEF can implement the transaction, writes the Commission.