Luxair Challenges European Commission Over Lufthansa-ITA Airways Merger
Luxair has decided to take its grievances to court. Luxembourg’s flag carrier announced on Wednesday that it has filed a legal appeal with the General Court of the European Union against the European Commission’s approval of the merger between Lufthansa and ITA Airways.
The Heart of the Dispute: Slots at Linate
While Luxair made clear it does not oppose the merger itself, the airline argues that the remedies proposed by Lufthansa to secure Brussels’ approval have marginalized smaller carriers. Specifically, it criticizes the allocation of landing and takeoff slots (slots) at Milan-Linate Airport, one of the most congested and strategically important airports in northern Italy.
The company contends that the solution package approved by the Commission disproportionately favors major groups like EasyJet, IAG (parent company of Iberia and British Airways), and Air France-KLM, which will gain access to more routes at the expense of regional operators such as Luxair.
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The Terms of the Lufthansa-ITA Deal
The controversy stems from a transaction approved in July 2024, when the European Commission authorized Lufthansa to acquire a 41% stake in ITA Airways for a total of €325 million (approximately $343.6 million). The acquisition aimed to strengthen the German group’s position in the highly competitive and growth-potential-rich southern European market.
In November, Brussels granted its final approval after accepting a package of corrective measures proposed by Lufthansa to prevent competition distortions. These included the surrender of key routes to competitors, but according to Luxair, they were applied in a discriminatory manner.
Impact on Regional Competition
Luxair’s exclusion from the slot allocation at Linate is not merely a technical disagreement. For the airline, it represents a direct barrier to its growth and access to the Italian market. The move also raises questions about the transparency and fairness of antitrust processes in the European Union, particularly when involving industry giants.
Luxair has chosen to challenge the Commission’s decision not to block the merger but to call for a review of access conditions to ensure fair opportunities for all airlines, regardless of their size.
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