EU decision on Lufthansa's ITA deal extended to June 13

By Foo Yun Chee

BRUSSELS (Reuters) - EU antitrust regulators have extended the deadline on their decision on Lufthansa's 325 million euro ($348.5 million) bid for a 41% stake in state-owned ITA by a week to June 13, according to the European Commission website.

The update follows efforts by the German carrier to sweeten a package of remedies offered this month to secure EU antitrust approval for the deal.

The Commission has voiced concern about the proposed deal's impact on competition on short-haul routes between Italy and Central European countries, as well as on long-haul routes between Italy and the United States, Canada and Japan.

ITA's dominant position at Milan's main airport would also be strengthened by the deal, it said.

The Italian government has urged the Commission to issue a timely decision on the fate of ITA, the successor to flag carrier Alitalia.

($1 = 0.9327 euros)

(Reporting by Foo Yun Chee; Editing by David Goodman)