The European Commission has given the go-ahead to the proposed acquisition of joint control of Ita Airways by Lufthansa and the Italian Ministry of Economy and Finance. This green light comes after a thorough investigation of the proposed merger and the submission of a corrective package by the two parties involved. The Commission's main concerns were about a possible reduction in competition on several short- and long-haul routes, particularly those between Italy and Central Europe, the United States and Canada. But according to Brussels, the merger could also have reduced competition on some routes between Italy and North America, where Lufthansa and its partners (United Airlines and Air Canada) already coordinate prices and schedules. There were also concerns that the merger could strengthen ITA's dominant position at Milan-Linate, making it more difficult for other competitors to offer competitive services. To address these concerns, Lufthansa and the MEF proposed a series of corrective measures. Regarding short-haul routes, Lufthansa and the MEF will make resources available for one or two competing airlines to operate direct flights between Rome or Milan and some central European airports. On long-haul routes, agreements will be made with competitors to improve their competitiveness on long-haul routes, such as through interline agreements or slot exchanges. Finally, take-off and landing slots at Milan-Linate will be transferred to beneficiaries of remedial measures, ensuring a sustainable base for competing airlines.
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