The European Commission has given final approval to Lufthansa to acquire a 41% stake in Italy’s ITA Airlines, following the approval of a remedy to address competition concerns.

The deal, worth 325 million euros, will allow Lufthansa to expand its presence in the southern European market while addressing antitrust requirements.

Remedies include allocating slots and routes to competing airlines. EasyJet has been given slot access at Milan Linate Airport and the right to operate additional short-haul routes. For long-haul routes, Lufthansa has reached agreements with IAG (parent company of British Airways and Iberia) and Air France-KLM Royal Dutch Airlines, allowing these carriers to expand their services from Italy to destinations such as the United States. I did.

The Commission confirmed that the chosen rescuer met the criteria of being independent from Lufthansa and ITA, while at the same time being a significant competitor. EasyJet has already announced plans to open new hubs in Rome Fiumicino and Milan Linate to take advantage of these new opportunities.

Lufthansa plans to complete the acquisition of a 41% stake by early 2025, with an option to acquire full ownership of ITA in the future. ITA Airlines, the successor airline to the bankrupt Alitalia, is expected to leave the SkyTeam alliance and join the Lufthansa-led Star Alliance after completing its capital investment. The move will see ITA work more closely with Lufthansa Group airlines such as Swissair, Austrian Airlines and Brussels Airlines.

The approval comes almost a year after the proposal was first notified to the European Commission and following an in-depth investigation into its competitive implications.