Lufthansa increases its offer to try to convince the EU on the ITA agreement

The discussions focused on how to separate Lufthansa’s share of revenue from its joint venture with United Airlines, where it currently coordinates prices, capacity and schedules, said one of the people, who both got the anonymity to discuss confidential discussions.

The new offer is the latest attempt to address the Commission’s concerns, said the second person, who cautioned that they were “not too optimistic.”

Both people said the decision had now “become political.”

Italy has pushed for the deal, with Italian Prime Minister Giorgia Meloni saying in September that the Commission was blocking her government’s proposed solution. She added that the issue had also been “brought to the attention” of EU Economy Commissioner Paolo Gentiloni, an Italian.

Lufthansa boss Carsten Spohr pushed hard to get the deal approved, pointing out that many observers believe ITA cannot survive without the deal.

EU competition chief Margrethe Vestager warned companies in May that authorities could not approve the deal “if serious competition concerns could not be resolved.”

Lufthansa is Europe’s largest airline by revenue after acquiring three smaller European airlines over the past 20 years. It left a bitter legacy. When Brussels Airlines was acquired, Lufthansa’s offer of takeoff and landing slots found no takers.

The Commission has since raised the bar on airline deals, warning that giving away slots is not an effective way to resolve problems, especially now that pandemic-hit airlines are reluctant to open new ones. roads.