ITA – Lufthansa Paradoxes Created by the EU

European Commission - image courtesy of M.Masciullo
European Commission - image courtesy of M.Masciullo

There are many analysts and consumer-passengers who, in the dispute between ITA Airways, Lufthansa airline, and the European Union (EU), foreshadow a paradox.

If, in fact, Brussels demands a cut in flights on the North Atlantic routes , there is a serious risk of a sharp increase in fares since a significant portion of the air offer covering the Europe-USA route, which represents one of the most profitable and courted in the world, would be lost, writes the newspaper Corriere della Sera.

This potential paradox is without considering that the EU conditions would weigh like rocks with a double and harmful effect: for Italian consumers, as they would be forced to use other routes to reach the United States, as well as for ITA Airways, because they would have to give up tens of millions of euros in profits generated precisely by Italy-USA-Canada connections.

This is namely the entry of non-European airlines on the direct routes between Italy and the USA, strengthened by the precedent that is a truly unique case in Europe, that being the Milan-Malpensa-New York connection operated for several years by Emirates.

It is worth remembering that on the basis of the Statement of Objections sent by the EU to the MEF (contact person for ITA Airways) and the Lufthansa Group, there are 39 routes defined as “problematic” by the EU and on which a sort of veto has been placed which precludes the green light for the operation. Of these 39, there are 8 which are direct intercontinental routes served by ITA Airways which should be downsized or even cut from the network.

Furthermore, the letter from the EU Commission explains that “ITA and Lufthansa, in addition to reducing their flights, should find a competitor to whom they can entrust the freed routes and help them financially by covering operating costs.”

All things considered, based on the claims of the EU Antitrust regarding cuts to routes on the North Atlantic, Italy would lose significant air connectivity indices to the advantage of other European countries.

WHAT TO TAKE AWAY FROM THIS ARTICLE:

  • It is worth remembering that on the basis of the Statement of Objections sent by the EU to the MEF (contact person for ITA Airways) and the Lufthansa Group, there are 39 routes defined as “problematic” by the EU and on which a sort of veto has been placed which precludes the green light for the operation.
  • If, in fact, Brussels demands a cut in flights on the North Atlantic routes , there is a serious risk of a sharp increase in fares since a significant portion of the air offer covering the Europe-USA route, which represents one of the most profitable and courted in the world, would be lost, writes the newspaper Corriere della Sera.
  • This is namely the entry of non-European airlines on the direct routes between Italy and the USA, strengthened by the precedent that is a truly unique case in Europe, that being the Milan-Malpensa-New York connection operated for several years by Emirates.

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About the author

Mario Masciullo - eTN Italy

Mario is a veteran in the travel industry.
His experience extends worldwide since 1960 when at the age of 21 he started exploring Japan, Hong Kong, and Thailand.
Mario has seen the World Tourism develop up to date and witnessed the
destruction of the root/testimony of the past of a good number of countries in favor of modernity/progress.
During the last 20 years Mario's travel experience has concentrated in South East Asia and of late included the Indian Sub Continent.

Part of Mario's work experience includes multi activities in the Civil Aviation
field concluded after organizing the kik off of for Malaysia Singapore Airlines in Italy as an Institutor and continued for 16 years in the role of Sales /Marketing Manager Italy for Singapore Airlines after the split of the two governments in October 1972.

Mario's official Journalist license is by the "National Order of Journalists Rome, Italy in 1977.

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