Spohr sees ITA low market share making case for quick competition approval

Lufthansa Group CE Carsten Spohr argues the relatively weak market share of ITA Airways means there is a case for European regulators to deliver an early approval for its planned acquisition of a stake in the Italian carrier. The Star Alliance carrier group has struck a deal to initially acquire 41% of ITA – with options to take full control at a later date – and is hoping to secure European Commission approval by the year end. Low-cost carriers had already eaten into the market share of ITA Airways’ struggling predecessor Alitalia, a factor which had heaped further pressure on Italy’s former flag carrier. ITA Airways, the start-up which took over as flag carrier in October 2021, is also around one-third smaller than its predecessor. It means ITA Airways has a relatively small market share compared to Ryanair, which is the biggest operator on Italian routes. Cirium schedules data for May shows Ryanair has a 33% share of seat capacity on Italian routes versus the 9% of ITA Airways – though the gap is 23% versus 9% when measured in ASKs, reflecting ITA’s long-haul network. "I hope very much that the European Commission sees that by a strengthened ITA our friend finally has competition in Italy,” Spohr said during an analysts and media call about the ITA acquisition today. "We should not be naive. There will be a very detailed legal look at it [by the Commission],” he adds. “With such a low market share of ITA, which is the probably lowest of all national carriers in Europe, and such a strong market share of the strongest low-cost airline in Europe, I’m sure they will appreciate now there is fair competition again which the consumers to and from Italy will take advantage of.”<br/>