The European Commission launches an in-depth look at competitive costs of the Lufthansa deal for ITA

By COLLEEN BARRY
AP Business Writer

MILAN (AP) — The European Commission has announced an in-depth investigation of German airline Lufthansa’s planned takeover of Italian carrier ITA Airways citing competitive concerns. Lufthansa signed a deal last year for a 41% minority share in the long-struggling ITA Airways formerly Alitalia. The deal calls for a 325-million-euro or $354 million investment by Lufthansa and another 250 million euros or $272 million from the Italian Finance Ministry. Lufthansa would have the option of buying the remaining shares at a later date. The European Commission cited concerns on Tuesday about reduced competition on short-haul flights between Italy and Central Europe and long-haul routes between Italy and the United States, Canada, Japan and India.