BRUSSELS/FRANKFURT/ROME, May 16 (Reuters) - Lufthansa

has offered to keep some competing ITA short-haul

routes in an effort to secure EU antitrust approval for its bid

for a stake in the Italian airline, people with direct knowledge

of the matter said on Thursday.

The offer is part of a package of remedies submitted to EU

competition enforcers last week to allay concerns that the deal

could reduce competition on short-haul and long-haul routes

connecting Italy with other countries and ITA's dominance at

Milan Linate airport.

Lufthansa wants to buy a 41% stake in state-owned ITA, the

successor to Alitalia.

The offer on short-haul routes concerns Germany, Belgium,

Switerland and Austria, the sources said.

A Lufthansa spokesperson declined to comment.

The German airline is also prepared to accept interlining

agreements with rivals, the sources said. Such deals allow

individual airlines to handle passengers travelling on

itineraries that require multiple flights on multiple carriers.

To address EU concerns on long-haul routes, the German

carrier said it would not integrate ITA into its joint venture

with United Airlines and Air Canada ( ACDVF ), the sources said, adding

that ITA would operate independently for two years.

Lufthansa also offered to give away 40 Milan Linate airport

slots to easyJet and Volotea, they said.

The European Commission, which is scheduled to decide on the

deal by July 4, is seeking feedback from rivals, consumer and

travel organisations and pilot groups. They have until May 19 to

respond.