Europe highlights 39 Lufthansa routes of concern

The details of the European Commission’s objection to the merger of ITA and Lufthansa have been revealed. Italian media outlet Corriere della Sera reported that the full, unredacted document reveals channels that the European Commission’s antitrust authorities have deemed problematic.

Last November, Lufthansa notified the European Commission of its intention to buy a 41% stake in the revived Italian national carrier and eventually take full control at a later stage.As reported by Simple Flying, the European Commission has announced the so-called Phase II A review of the deal was held in January, and a final decision is due to be made, at least officially, by June 6.

Routes affected

The document, obtained by an Italian news site from sources, details the exact routes that will trigger competition-related issues. The acquisition of ITA by Lufthansa de facto Both companies become a single entity. Some of the current routes are competed by airlines. Once combined and operating as a single entity, both companies will dominate the relevant markets. The European Commission’s antitrust authorities are concerned that this will lead to higher prices and lower quality of service.

A total of 39 routes are listed in this document. Twelve of these routes start in Rome or Milan and go to other cities in Europe, and 14 routes start in small secondary cities in Italy and go to other cities in Europe. Eight refer to long-haul intercontinental routes between Italy, the United States, Canada, and Japan. Both airlines dominate the market share on these routes, with passengers connecting on either Lufthansa or ITA flights to reach their final destination. Five other routes are mentioned in the document, although there are no direct flights between them. Take a look at the detailed list of all affected routes.

Photo: Davide Calabresi | Shutterstock

intercontinental nightmare

One of the more serious problems the European Commission has is related to intercontinental routes, particularly affecting services between the United States and Italy. The European Commission’s intercontinental line of opposition is as follows:

• Rome to new york
• Rome to Washington
• Rome to San Francisco
• Rome to Chicago
• Rome to Toronto
• Rome to Los Angeles
• Rome to miami
• Rome to Tokyo

Photo: Global Guy | Shutterstock

ITA’s long-haul network spans 16 destinations, eight of which are listed above as being of concern to the competition authorities in Brussels. If the European Commission has its way, 50% of ITA’s long-haul network will be cut due to the takeover.

related

Daily from Rome to Tokyo: ITA Airlines increases flights to meet high demand

The airline has achieved excellent load factors on this route.

The short to medium range market in Italy is already quite saturated. European low-cost airlines have grown rapidly in Italy in recent years, posing a threat to other full-service airlines, which generally have higher operating costs. By developing on the long-haul side, ITA could try to attract both connecting passengers and alleviate at least some of the impact of low-cost carriers.

Possible reductions in Europe

There are 12 routes from Milan and Rome:

• milan to Brussels
• milan to dusseldorf
• milan to Frankfurt
• milan to hamburg
• milan to stuttgart
• Milan (Malpensa) to vienna
• Rome to Brussels
• Rome to Frankfurt
• Rome to munich
• Rome to zurich
• Rome to hamburg
• Rome to vienna

The majority of these routes connect Lufthansa Group hubs with Italy. This includes flights to Brussels (Brussels Airlines), Frankfurt and Munich (Lufthansa), Vienna (Austrian Airlines) and Zurich (Swiss International Airlines).

Photo: Robert Buckel | Shutterstock

14 different groups of routes disproportionately Affects southern Italy.

• Bari to Frankfurt
• Bari to hamburg
• Bari to munich
• Brindisi to dusseldorf
• Brindisi to stuttgart
• Cagliari to munich
• Catania to Frankfurt
• Lamezia Terme to zurich
• naples to dusseldorf
• naples to Frankfurt
• naples to stuttgart
• Palermo to Frankfurt
• Rome to stuttgart
• naples to hamburg

Finally, the European Commission I object highlights five routes that neither airline operates, but which would be indirectly affected if the merger is approved. Also this:

• naples to new york (Winter only)
• milan to San Francisco
• florence to new york
• Catania to new york
• bologna to new york

frustration in italy

Inevitably, Italy is not happy. Economy Minister Giancarlo Giorgetti said Brussels was trying to prevent Italy from creating a world-renowned airline that could compete internationally. According to Il Sole 24 Ore, he said:

“We have an airline called Ita, which used to be called Alitalia. We said:
Aim to become a European champion who can compete with international powerhouses.
. For 10 months we have been fighting against a Europe that will not tolerate this. ”

related

Lufthansa threatens to withdraw from ITA acquisition over EU concerns

In a statement to Simple Flying, Lufthansa said it was nevertheless confident that “the merger application will be approved.”

It remains to be seen how both airlines will respond to the appeal. They have until April 26 to propose a solution (including concessions) or convince Brussels that the benefits outweigh the possible drawbacks.

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