Lufthansa is continuing its takeover of the Italian airline ITA Airways, but the deal comes at a price: in order for the merger to be approved by the European Union's competition authorities, the German airline must give up valuable slots in Italy.
This particularly affects the busy airports of Milan Linate and Rome Fiumicino, where Lufthansa and ITA have to release a total of 24 daily slot pairs - 15 in Milan and 9 in Rome. This decision opens the door for other airlines to fight for these coveted take-off and landing times.
Easyjet on course for expansion in Italy
One of the biggest beneficiaries of this regulation could be Easyjet. The British low-cost airline has already announced that it will apply for the vacant slots at Milan-Linate and Rome-Fiumicino. Both airports are crucial for Italian domestic traffic and serve as hubs for important connections throughout Europe. Milan-Linate in particular is considered one of the most important airports for business travelers and offers sought-after connections to the Lufthansa Group's central hubs such as Frankfurt and Munich. Easyjet sees this as an opportunity to further expand its presence in Italy and, according to its own statement, plans to consider opening new bases in Milan and Rome in 2025, provided the slots are allocated.
However, competition for the slots is fierce. In addition to Easyjet, the Spanish airline Volotea has also expressed interest. Volotea, which is known for its short-haul flights in Europe, had previously hoped to benefit from Iberia's takeover of Air Europa, but after that deal fell through, Volotea could now focus on the coveted Italian slots. Ryanair, on the other hand, has shown no interest in the released slots. According to the Irish low-cost airline, the routes in Milan and Rome are less attractive for its business model.
Easyjet’s withdrawal from Venice
While Easyjet is expanding in Milan and Rome, there are also headlines about the airline's withdrawal from Venice Marco Polo Airport. The British airline has announced that it will close its base in Venice and withdraw its aircraft stationed there. This decision has caused considerable unrest, especially at the Save Group, the operator of Venice Airport.
The Save Group expressed surprise and disappointment at the unexpected withdrawal and sharply criticized Easyjet. According to Italian media, the airport operator stated that the traffic volume generated by Easyjet had been unsatisfactory for some time. In addition, Easyjet had recorded the most delays and flight cancellations in August 2024, which further aggravated the situation. Nevertheless, 15 of the 20 routes served by Easyjet are already covered by other airlines, which could potentially mitigate the impact of the withdrawal for Venice Airport.
The strategic importance of the slots in Milan and Rome
The slots at Milan-Linate and Rome-Fiumicino are of enormous strategic importance. They enable airlines to serve the busiest and most profitable routes. It is particularly important for Lufthansa and ITA that the released slots do not lead to competition on their main routes to the Lufthansa Group's hubs. These hubs, including Frankfurt, Munich and Zurich, are crucial to the Lufthansa Group's network.
With the new slots in Milan and Rome, Easyjet could break the monopoly positions on some of these routes, which is also in the interest of the European competition authorities. According to EU rules, slot fees must be paid in the event of mergers or takeovers if this threatens to significantly distort competition on important markets. This is precisely what is to be feared in the case of Lufthansa and ITA, as both airlines could hold a strong monopoly on many routes after the takeover.
While Easyjet is re-orientating its Italian strategy for 2025 and is expanding in Milan and Rome, Venice is losing a key player. The competition for the coveted slots will remain exciting, especially as other airlines such as Volotea are also sensing their opportunities. For the Italian market, however, the redistribution of slots could create new dynamics and boost competition at the major airports. The allocation of slots will have a decisive influence on how air traffic in Italy develops in the coming years.
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