Ita-Lufthansa, EU Commission decision nearing completion

ITA Lufthansa progress but the hub of US flights remains

(Finance) – The European Commission decision on the Ita-Lufthansa operation is nearing completion and, on an informal level, an orientation will be taken in the next few days. This is what community sources close to the dossier told ANSA, indicating that the dialogue between the parties continues following the closing of the polls for the European elections. In view of the verdict, expected by July 4, the positions have become closer in recent weeks, with various concessions put on the table by the Treasury and Carsten Spohr’s company which led to an agreement with the EU antitrust team led by Margrethe Vestager on the sale of slots at Milan-Linate to rivals (easyJet, Volotea and Wizz Air) and on the opening of routes from Italy to Central Europe to competitors.

However, the last obstacle to Brussels’ yes concerns the long-term players connections from Fiumicino to North America. Lufthansa has offered the EU to freeze ITA’s entry from its joint venture formed with United and Air Canada for two years, no longer. A proposal so far deemed insufficient by the EU antitrust. In recent days, in an attempt at mediation at the last minute, the German ski giant has put on the table broader guarantees to protect competition.

Today, meanwhile, it was held the meeting between the top management of Ita Airways and the sector unions on the status of negotiations with Brussels for Lufthansa’s entry into the company and the company’s industrial plan. For Ita Airways the president Antonino Turicchi and the general director Andrea Benassi, for the unions the national secretaries of the air transport sector. “For Ita, the outcome of the negotiations will be known within about ten days” with Brussels for the entry of Lufthansa into the company” said the president of ANP, Marco Venezianileaving the meeting of the unions with the company’s top management, adding that comforting data is arriving from Ita with a 30% increase in turnover compared to the budget.

The belief of Ita Airways – according to what was reported by the national secretary of Filt Cgil, Fabrizio Cuscito after the meeting with the top management of Ita Airways – is that “it will be this European Commission” that will decide on Lufthansa’s entry operation. “The date of 4 July – said Cuscito – is mandatory. The expiry date of the exclusivity, set for 30 June, could instead be postponed through an agreement between the parties, if Brussels’ decision were to be positive”. Ita Airways – continued Cuscito – has a calm cash situation, 420 million currently available and a financing deal that the company is closing for another 240 million euros.

“We await the decision from Brussels which should arrive shortly, but a possible negative outcome would be very serious damage, especially for citizens – said the national secretary of Uilt, Ivan Viglietti, at the end of the meeting with the management of Ita Airways –. We will not accept penalties for workers, so the industrial plan must move forward. The numbers that the company has presented to us are comforting in view of the summer with an increase in capacity of 35% and a turnover growing by 35% compared to the budget, as well as a calm cash situation.”

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