In recent weeks there have been increasing signs that the EU Commission will most likely not wave through Lufthansa's planned entry into Ita Airways, which is expected to result in a takeover in the long term, without significant conditions. Now the unions are trying to put pressure on them. 

The Kranich Group was initially unable to prevail in an extremely lengthy tender process. However, no purchase contract was concluded with the consortium to which the contract was originally awarded. Lufthansa positioned itself in good time and carried out useful lobbying work in Italy. Ultimately an agreement was reached with the Italian government. This envisages a gradual takeover of Ita Airways by Lufthansa. 

The deal has not yet been officially registered. A kind of preliminary examination procedure is currently underway in which the EU Commission requires an extremely large number of documents. The planned entry is being examined much more thoroughly than those responsible at the two airlines and the Italian government assumed. The European competition authorities even want information about the on-board catering planned in the future. 

Recently it has leaked to the public that the commission could possibly impose tough conditions. It was mentioned that Lufthansa would have to hand over take-off and landing rights for transatlantic routes to competitors at the hubs in Munich and Frankfurt am Main. This would have a serious impact on the crane, as these routes are considered to be particularly productive. Further requirements are also conceivable, but these would mainly affect traffic to/from Italy and could also lead to Lufthansa subsidiaries having to reduce or even abandon one or another route. At the moment it doesn't look at all as if the EU competition authorities are even considering that the takeover will be waved through without any concessions or conditions. 

There is probably a good reason for this: the acquisitions of Swiss, Austrian Airlines and Brussels Airlines did not have any significant conditions. Although Austrian Airlines and Lufthansa had to give up some slots from Vienna to Frankfurt, Munich and Stuttgart, the effect that prices at least remain constant when competitors establish themselves simply did not occur. There were, among others, Adria Airways, Niki and Lauda as challengers on the routes mentioned, but they were unable to hold on long-term. It also plays a role that the Lufthansa Group reacted to the competition in terms of prices and turned the price screw soon after the respective competitor withdrew. Tickets for Austria-Germany traffic are currently very expensive because on most routes there is no alternative to the Lufthansa Group airlines. 

In addition, there is the debacle surrounding the state aid granted by Germany, which, mind you, has already been completely restructured into capital market bonds. The EU court declared the approval inadmissible in the first instance. The matter is currently before the European Court of Justice as an appeal against the decision has been lodged. 

Joint request to the EU Commission 

The unions that represent the respective employees in various countries in which the Lufthansa Group operates flights are now trying to put public pressure on the takeover of Ita Airways to be approved as quickly and as unconditionally as possible. This is remarkable because in everyday life employee representatives rarely miss an opportunity to criticize the respective company. However, it is believed that Ita Airways will have an optimal future under the wings of Lufthansa. 

The following statement was issued jointly by all unions representing employees at the Lufthansa Group: “As representatives of all employees of ITA Airways and the Lufthansa Group, we fully support the planned partnership and entry of the Lufthansa Group into ITA Airways. We call on the European Commission to approve and support the merger in a timely manner in order to maintain European sovereignty over critical aviation infrastructure. 

This development is the right path for ITA and it comes at the right time to secure our jobs and working conditions as ground staff, flight attendants and pilots. It is also a crucial step in keeping European aviation strong and reliable for our citizens and the economy. 

A strong commitment to ITA and Lufthansa's industrial partnership guarantees a solid future for employees and long-term operations for an important element of Italy's infrastructure. As representatives of all employees, we will continue to work together for a strong ITA, a strong Lufthansa Group and a strong European air transport system!”