MILAN (AP) — The European Commission on Tuesday announced an in-depth investigation of German airline Lufthansa’s planned takeover of Italian carrier ITA Airways, citing competitive concerns.
Lufthansa signed a deal last year for a 41% minority share in the long-struggling ITA Airways, formerly Alitalia.
The deal calls for a 325-million-euro ($354 million) investment by Lufthansa, and another 250 million euros ($272 million) from the Italian Finance Ministry.
The European Commission cited concerns about reduced competition on short-haul flights between Italy and Central Europe and long-haul routes between Italy and the United States, Canada, Japan and India.
ITA Airways and Lufthansa compete on the Central European flights, where low-cost players generally serve secondary airports.
Persons:
Gregory Alegi, bailouts, ’ Alegi
Organizations:
MILAN, European Commission, Lufthansa’s, Italian, ITA Airways, Lufthansa, Alitalia, Italian Finance Ministry, Central, ITA, Air Canada, United, European Union, LUISS University
Locations:
Italy, Central Europe, United States, Canada, Japan, India, Milan’s Linate