Condor Airlines Files EU Court Challenge Against Lufthansa-ITA Merger

Key Takeaways

• Condor sued EU General Court on May 21, 2025, over Lufthansa’s 41% ITA Airways stake approval.
• European Commission required Lufthansa to give Milan and Rome slots to EasyJet as merger remedies.
• Smaller airlines claim slot remedies favor big groups, risking reduced competition and higher traveler prices.

Condor Airlines Files Lawsuit Against Lufthansa-ITA Airways Merger: What’s at Stake for European Aviation?

On May 21, 2025, Condor, a well-known German leisure airline, took a bold step by filing a lawsuit with the General Court of the European Union. The target of this legal action is the European Commission’s decision to approve Lufthansa Group’s purchase of a 41% stake in ITA Airways, Italy’s national airline. This move by Condor, joined by a similar lawsuit from Luxair, Luxembourg’s national carrier, has put a spotlight on the future of airline competition in Europe and raised important questions about how mergers are handled by European authorities.

This article explains what led to these lawsuits, why Condor and Luxair are concerned, how the European Commission tried to address competition worries, and what the outcome could mean for travelers, airlines, and the wider aviation market.

Why Did Condor Challenge the Lufthansa-ITA Airways Deal?

Condor’s lawsuit centers on a simple but important question: Does the European Commission’s approval of the Lufthansa-ITA Airways merger do enough to protect fair competition, especially for smaller airlines?

After months of review, the European Commission gave Lufthansa the green light in July 2024 to buy a 41% stake in ITA Airways for €325 million. However, this approval came with conditions. Lufthansa and ITA Airways had to give up some of their valuable take-off and landing slots at Milan and Rome airports. These slots were then handed over to EasyJet, a large low-cost airline.

Condor, however, believes these remedies fall short. In a statement, a Condor spokesperson said, “The remedies imposed are not sufficient to offset the harm to, or even elimination of competition resulting from this transaction. We are asking the Court to annul this decision to allow independent carriers like Condor to develop freely in fair competition and to the benefit of European passengers.”

Luxair echoed these concerns, arguing that the process of giving away slots favored bigger airline groups like EasyJet, IAG, and Air France-KLM, while smaller carriers were left out.

How Did the Lufthansa-ITA Airways Deal Unfold?

To understand the current dispute, it helps to look at the timeline:

• 2023: Lufthansa and ITA Airways begin merger talks. ITA Airways is the successor to Alitalia, Italy’s former flag carrier.
• July 2024: The European Commission approves Lufthansa’s purchase of a 41% stake in ITA Airways, but only if certain conditions (remedies) are met.
• January 2025: The deal is finalized. Lufthansa pays €325 million for its stake. The Italian Ministry of Economy and Finance keeps the remaining 59% but allows Lufthansa the option to buy more shares in the future.
• May 2025: Condor and Luxair file lawsuits with the General Court of the European Union, challenging the Commission’s approval and the fairness of the remedies.

What Are the Main Concerns About Competition?

The heart of the issue is whether the remedies required by the European Commission are enough to keep the airline market fair and open. Here’s what’s at stake:

• Market Power: Lufthansa is already one of Europe’s biggest airline groups. By buying a large share of ITA Airways, it gains a stronger position in Southern Europe, especially on routes between Germany and Italy.
• Slot Allocation: Take-off and landing slots at busy airports like Milan and Rome are very valuable. By giving these slots to EasyJet, the Commission hoped to keep competition alive. But smaller airlines like Condor and Luxair say they were not given a fair chance to get these slots.
• Impact on Smaller Airlines: If big airline groups keep getting bigger, smaller and independent airlines may find it harder to compete. This could lead to higher prices and fewer choices for travelers.

Industry analysts point out that while slot divestitures are a common remedy in airline mergers, they may not always solve deeper problems, especially when a few large companies dominate the market.

What Is the Legal Process Now?

The legal process follows a clear path:

1. European Commission Approval: The Commission approved the deal in July 2024, but with strict conditions.
2. Deal Finalization: Lufthansa’s purchase of 41% of ITA Airways became official in January 2025.
3. Legal Challenges: Condor filed its lawsuit on May 21, 2025. Luxair filed a similar complaint around the same time.
4. General Court Review: The General Court of the European Union will now review the complaints. The court will decide if the Commission’s approval should stand or be overturned.

This process could take many months, or even longer if there are appeals.

What Remedies Did the European Commission Require?

To address concerns about too much market power, the European Commission required Lufthansa and ITA Airways to:

• Give up certain take-off and landing slots at Milan and Rome airports.
• Transfer these slots to EasyJet, a large low-cost airline.

The idea was that by giving these slots to a competitor, the merged company would not be able to dominate key routes. However, Condor and Luxair argue that this solution only helps other large airline groups and does not create real opportunities for smaller carriers.

What Are the Implications for Travelers and Airlines?

The outcome of this legal battle could have big effects on the European airline market:

• Travelers: If competition is reduced, travelers may see higher prices and fewer choices, especially on routes between Germany and Italy or within Southern Europe.
• Airlines: Smaller airlines like Condor and Luxair worry they will be squeezed out of important markets. Larger groups like Lufthansa, IAG, and Air France-KLM could become even more dominant.
• Future Mergers: The court’s decision will set a precedent for how future airline mergers are handled in Europe. If the remedies are found to be too weak, the Commission may have to impose tougher conditions in the future.

Why Are Take-Off and Landing Slots So Important?

Take-off and landing slots are permissions for airlines to use runways at busy airports at specific times. These slots are limited, especially at major airports like Milan and Rome. Owning more slots means an airline can offer more flights and attract more passengers.

When two big airlines merge, they may control too many slots, making it hard for others to compete. That’s why the European Commission often requires merging airlines to give up some slots to rivals. However, as Condor and Luxair argue, if these slots only go to other large airlines, the market may still become less competitive.

What Do the Different Stakeholders Say?

• Condor: Wants the court to cancel the Commission’s approval, arguing that the remedies do not protect fair competition. Condor says independent airlines need a level playing field to grow and serve passengers.
• Luxair: Focuses on the unfair way slots were given out, saying smaller airlines were ignored in favor of bigger groups.
• European Commission: Defends its decision, saying the remedies were designed to address antitrust concerns and keep the market competitive.
• Lufthansa Group: Has not made a new public statement about the lawsuits but continues to pursue its goal of full ownership of ITA Airways.
• Industry Analysts: Some experts say that while slot divestitures are a standard remedy, they may not always fix deeper problems in markets where a few big players dominate.

What Happens Next?

The General Court of the European Union will now review the lawsuits from Condor and Luxair. The court will look at whether the European Commission’s approval and the remedies it required were enough to protect competition.

Possible outcomes include:

• Court Upholds the Approval: If the court agrees with the Commission, Lufthansa keeps its 41% stake in ITA Airways, and the remedies stay in place.
• Court Annuls the Approval: If the court finds the remedies were not enough, it could cancel the Commission’s decision. This would put Lufthansa’s stake in ITA Airways at risk and could force a new round of negotiations.
• Remedies Are Changed: The court could order the Commission to come up with new or tougher remedies to better protect competition.

The decision could take months or even longer, depending on appeals and the complexity of the case.

How Does This Affect the Future of Airline Mergers in Europe?

The outcome of this case will shape how future airline mergers are reviewed and approved in Europe. If the court finds that the current remedies are too weak, the European Commission may have to set stricter rules for future deals. This could make it harder for big airline groups to buy rivals or expand their networks.

For smaller airlines, a strong ruling in their favor could mean more chances to grow and compete. For travelers, it could mean more choices and better prices.

What Should Travelers and Industry Watchers Look Out For?

• Court Decision: The General Court’s ruling will be closely watched by airlines, regulators, and travelers across Europe.
• Slot Allocation: How slots are given out in future mergers may change, especially if the court finds the current process unfair.
• Market Changes: If Lufthansa is forced to give up its stake or accept tougher remedies, this could shake up the airline market in Southern Europe and beyond.

Official Resources for Further Information

For those who want to follow the case or learn more about how the European Commission reviews airline mergers, the European Commission’s competition website offers official documents and updates. This site provides clear information about merger rules, remedies, and ongoing cases.

Summary Table: Key Facts

Conclusion: Why This Case Matters

Condor’s legal challenge, joined by Luxair, is more than just a dispute between airlines. It’s a test of how Europe balances the need for strong airlines with the need for fair competition. The outcome will affect not only Lufthansa, ITA Airways, and their rivals, but also millions of travelers who rely on affordable and reliable air travel across Europe.

As reported by VisaVerge.com, the case highlights the ongoing struggle between big airline groups and smaller carriers over access to key markets and resources like airport slots. The decision by the General Court will set the tone for future mergers and could lead to changes in how the European Commission handles competition in the aviation sector.

For now, travelers, airlines, and industry watchers will be waiting to see how the court rules—and what it means for the future of flying in Europe.

Practical Takeaways:
– Travelers: Watch for changes in flight options and prices, especially on routes between Germany and Italy.
– Airlines: Smaller carriers may gain or lose opportunities depending on the court’s decision.
– Industry Professionals: Stay updated on the case through official sources and be prepared for possible changes in merger rules and slot allocation.

For more information on the legal process and updates on the case, visit the European Commission’s competition website.

Official Airline Resources:
– Condor Airlines
– Lufthansa Group
– ITA Airways

The coming months will be crucial in deciding how Europe’s skies are shared—and who gets to fly where, and at what price.

Learn Today

European Commission → EU body overseeing competition, merger approvals, and market fairness in member states.
ITA Airways → Italy’s national airline and successor to Alitalia, involved in merger with Lufthansa.
Take-off and landing slots → Scheduled permission for airlines to use specific airport runways at set times.
Slot divestiture → Requirement for merging airlines to give up slots to competitors to maintain competition.
General Court of the European Union → Judicial body reviewing EU decisions, including competition and merger disputes.

This Article in a Nutshell

Condor’s May 2025 lawsuit challenges the EU’s approval of Lufthansa’s ITA Airways stake, arguing remedies fail smaller airlines. Slot allocations to EasyJet raise competition concerns, potentially affecting traveler choices and pricing across Europe’s aviation market. The court’s ruling will influence future airline mergers and competitive balance.
— By VisaVerge.com