BRUSSELS (dpa-AFX) - The EU's competition watchdogs are conducting an in-depth investigation into Lufthansa 's planned acquisition of Italian airline Ita. A preliminary investigation has shown that the merger could reduce competition on some short and long-haul routes, the EU Commission announced on Tuesday. On some routes between Italy and Central European countries, Lufthansa and Ita were in direct competition with each other with non-stop flights.

There is only limited competition from other airlines

- primarily from low-cost airlines such as Ryanair. However, these would often fly from more remote airports. The EU Commission must now issue a decision on the proceedings by June 6, according to the information provided by the Commission.

Lufthansa had already made concessions in the EU antitrust proceedings, but declined to give details. It said a few weeks ago that it was in close and constructive discussions with all parties involved. In the case of airline takeovers, the EU Commission usually requires unbundling at airports where the new partners would be particularly strong as a result of the merger.

After months of negotiations, the German MDax group agreed with the Italian state at the end of May to acquire a minority stake of 41 percent in the airline Ita Airways. In return, Ita is to receive 325 million euros in equity from Lufthansa cash. According to the agreement, Lufthansa can also acquire a further 49 percent of the shares from 2025 on certain conditions and later also the remaining 10 percent.

The deal between Lufthansa and the Italian state has since been subject to competition law reviews at national and European level. Italy's Prime Minister Giorgia Meloni has already put pressure on the EU to approve the acquisition of the previously state-owned airline Ita Airways in the near future. Finance Minister Giancarlo Giorgetti also criticized the lengthy review: "The fact that we are losing more time is not a good thing."

Italia Trasporto Aereo (Ita), founded in 2020, took over the flight operations of its insolvent predecessor Alitalia in October 2021, but is not its legal successor. However, the new airline has secured take-off and landing rights as well as the Alitalia brand. The legendary name could possibly soon be reactivated under the new corporate umbrella./mjm/DP/jha