Exclusive-Lufthansa's ITA Airways stake set to face full EU competition inquiry

By Foo Yun Chee

BRUSSELS (Reuters) - EU regulators have not sought feedback from rivals and customers on Lufthansa's remedies related to its bid for a minority stake in ITA Airways, suggesting the deal faces a full-scale investigation, three people with direct knowledge of the matter said.

Lufthansa put in its offer to the European Commission on Jan. 8.

It was prepared to cede slots at Milan-Linate Airport, where it overlaps with the Italian state-owned company on roughly half a dozen European routes to Lufthansa hubs in Frankfurt, Munich, Vienna and Zurich, sources have previously told Reuters.

The Commission declined to comment.

The EU competition enforcer typically starts a market test once remedies are offered by asking rivals and customers for their views on whether these address antitrust concerns.

That the Commission has not launched a market test on Lufthansa's remedies suggests the EU executive does not think they are sufficient and that an in-depth EU investigation would follow the regulators' preliminary review of the deal that ends on Jan. 29, the people said.

An Italian government source said a full-scale EU enquiry is expected, repeating Economy Minister Giancarlo Giorgetti's comments last month.

(Reporting by Foo Yun Chee, additional reporting by Giuseppe Fonte in Rome and Ilona Wissenback in Frankfurt; editing by Kevin Liffey and Barbara Lewis)