Rival airlines are set to secure more routes to Italy after the European Commission approved a package of remedies proposed for Lufthansa’s acquisition of a minority stake in ITA Airways.
Lufthansa won antitrust approval in July to acquire 41% of state-owned ITA, the successor airline to bankrupt Alitalia, for €325 million, in a deal designed to boost its presence in the lucrative southern European market.
However, Lufthansa and the Italian ministry of economy and finance had to make commitments to allow competitors to take up more short- and long-haul flights from Italy and transfer some take-off and landing slots at Milan’s Linate airport.
The parties committed to make available assets and transfer slots at Linate so that EasyJet could start short-haul flights from Rome and Milan to certain airports in Europe.
They also committed to enter into agreements with British Airways owner IAG and Air France-KLM to allow them increased non-stop flights or improved connections for one-stop flights from Italy to North America.
The Commission said on Friday that it had approved the planned transactions based on the independence of the rival airlines from Lufthansa and Italy, their track record as viable competitors and the lack of other competition concerns.
The agreement over remedies to rival carriers means that Lufthansa can complete the deal for ITA.
EasyJet is to base five aircraft at Milan Linate and three at Rome Fiumicino, creating around 300 jobs across the two bases, as a result of the ruling.
The budget carrier will base a total of 38 aircraft in Italy across its four bases in Milan Malpensa, Milan Linate, Rome Fiumicino and Naples from next spring.
The airline will operate to and from 20 Italian airports flying more than 20 million customers to and from the country annually.
Incoming chief executive Kenton Jarvis said: “We are pleased to be approved as the short-haul remedy taker in Milan and Rome.
“This will ensure the Italian market remains competitive, with EasyJet now able to offer a wider choice of destinations and low fares for Italian consumers, with those flying to and from Linate and Rome benefiting from new services from spring onwards.
“This move also confirms the airline’s key role in the Italian market providing the opportunity for continued investment, additional jobs and growth.”