The EU’s competition regulator has dealt Lufthansa a blow in its attempt to buy a significant stake in Italian carrier ITA Airways.
The Commission has ruled that Lufthansa’s planned acquisition of a 41% stake in ITA could hamper competition in the European short haul sector and transatlantic routes and push up prices across the board for passengers.
The EU said it would also give ITA a dominant position at the main airport in Milan.
“The removal of ITA as an independent airline may have negative effects on competition in these already concentrated markets,” the EU said.
Lufthansa is allowed to put forward new remedies by April 26 and the German airline has said it will “promptly submit a concept for concessions” in order to address EU concerns.
