Lufthansa, ITA Airways deal may hurt competition, EU antitrust watchdog says


Brussels: lufthansaBid for minority stake in Italian rival ITA Airways may cause loss! Competition and leads to higher prices, eu antitrust regulator That said on Monday, it increased pressure on German carriers to take stronger measures.
The European Commission said the deal threatens competition on short-haul routes between Italy and Central European countries, as well as long-haul routes between Italy and the US, Canada and Japan. It will also strengthen ITA's dominant position at Milan's main airport.
The European Commission put forward its concerns in a statement of objections to Lufthansa, confirming a Reuters story earlier this month. Lufthansa and the Italian government can now put forward new measures.
The deal underlines a wave of consolidation in the airline industry, with British Airways owner IAG seeking to buy Spanish airline Air Europa.
Lufthansa wants to buy a 41% stake in the state-owned Italian rival for 325 million euros ($351.46 million) as part of a capital increase.

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