Nostalgics of the ITA Airways-Lufthansa affair can rest assured, it is a never-ending story. And with no shortage of twists and turns.
After the July go-ahead from the European Commission's Antitrust Authority for the Lufthansa group’s planned acquisition of 41% of ITA Airways' capital the stages of the integration process are intensive and plentiful. Right now the Italian airline and the German giant are engaged in discussions to meet the conditions imposed by Brussels for the finalization of the entire operation.
This is the backdrop to the affair involving easyJet and Volotea in a head-to-head battle for the allocation of the slots that ITA and Lufthansa will relinquish at Milan Linate airport. This step is necessary to avoid the monopoly on medium-haul routes that would otherwise be created by the long-awaited marriage. And a similar situation applies to long-haul routes, but that’s another story.
At Linate, which is Milan's City Airport, the reduction of ITA and LH flights on intra-European routes means giving up15 daily slot pairs (30 return flights) but also nine pairs at Rome Fiumicino. While negotiations have from the beginning seen easyJet in pole position, a potential entry of Volotea is back on the cards after the failed attempt to obtain slots in Madrid following the stop to the IAG-Air Europa merger.
The final decision, due by the beginning of November, will once again be up to the EU Antitrust Authority. In addition to the cession of slots and the obligation to operate certain routes for at least three years, a five-year commercial agreement between easyJet (or Volotea) and ITA-LH is envisaged, with the latter having to help fill the former's aircraft.
Another page still to be written is that of the future extraordinary shareholders' meeting that will deliberate the reserved capital increase of €325 million by Lufthansa and appoint the new board of directors, which will be made up of five members. Three of these, including the chairman, will be appointed by the Italian Ministry of Economy and Finance, and two by Lufthansa, with one taking on the role of managing director. The countdown has begun, and bets are open.
Mariella Cattaneo
Journalist
