FRANKFURT/ROM (dpa-AFX) – After years of negotiations, Lufthansa officially takes a stake in the Italian national airline Ita this Monday (January 13). For management and crews, a lot will change, not least due to EU competition requirements, but passengers will also experience radical changes. In Italy, on the other hand, the entry of the Germans into the proud Italian airline is not viewed favorably.
What did the partners agree to?
Lufthansa initially obtains 41 percent of Ita’s shares in exchange for a capital contribution of 325 million euros. This step must be officially taken on Monday. It was agreed with the Italian Ministry of Economy and Finance that the Germans could take over the entire company in two further stages if the figures are correct. The Italian state would remain on board if Lufthansa becomes 90% majority in the second stage. Complete recovery could then follow by 2033, for a total amount of 830 million euros.
What role did the European Commission play?
Under pressure from the European Commission, the Lufthansa group made concessions in order to limit the market power of the new alliance. Takeoff and landing rights in Milan and Rome had to be ceded to competitors. In addition, Ita has already canceled three routes to North America and will in the future have to fly passengers from its competitor International Airlines Group (IAG), the parent company of British Airways and Iberia, as well as Air France , with priority to their hubs.
What does this mean for customers?
First of all, Lufthansa was able to “optimize” its offer between Italy and its other domestic markets. For customers, this could mean higher prices for roughly the same number of seats. This is where the EU wants to create competition with its demands. On the short and medium haul, the low-cost airline Easyjet, already active in Italy, plays a central role by creating two new bases in Rome-Fiumicino and Milan-Linate with eight aircraft. From there, 27 new connections will be offered, including six to Germany. The destinations are Munich, Hamburg, Frankfurt and Düsseldorf.
What is Ita’s position?
According to Lufthansa strategists, Ita no longer has anything in common with its loss-making predecessor Alitalia. Lufthansa President Carsten Spohr called Italia Trasporto Aereo (Ita), established in 2020 and with a fleet of state-of-the-art Airbus aircraft, a “startup in the middle development phase”. Ita President Antonino Turicchi announced a turnover of 3 billion euros and a small operating profit of 40 million euros for the financial year 2024. Additional savings should also be possible in the within the group.
Who will be at the head of the new Ita?
Jorg Eberhart, director of strategy at Lufthansa, is expected within the group to take the helm of Ita. For almost eight years, he has already managed the regional subsidiary Air Dolomiti, active in northern Italy. The manager also played a central role in the takeover negotiations. The election of the new five-headed management committee is scheduled for Ita’s first shareholder meeting after Lufthansa’s arrival.
What will change for Ita passengers?
For Ita’s current customers, which include Pope Francis on a regular basis due to his trips abroad, many small details regarding the flight will change. The transition from the airline alliance Skyteam to Star Alliance, dominated by Lufthansa, entails changes in the partner companies for possible onward flights, as well as in the infrastructure provided, such as airport lounges. Lufthansa wants to integrate Ita’s regular customers from the Volare loyalty program into its own Miles&More, corresponding offers for status and mileage evaluation should arrive soon.
What do the Italians think of the arrival of the Germans?
The entry of Germans into the capital of the proud Italian airline is not unanimous among Italians: for some, the fact that a powerful German group is taking over the Italian national airline is a serious offense. The satirical supplement of the daily “La Stampa” recently depicted a new Ita plane in the form of an oversized beef sausage, with the black, red and gold inscription: “The new Alitalia – Enough with the spaghetti eaters “.
Italian politics also did not want to feel completely powerless at the end of the negotiations, just before the agreement was concluded. During the last phase of the price negotiations, the ministry in Rome threatened to collapse the agreement. When Lufthansa wanted to lower the price of the second tranche at the last moment, the ministry declared: “Italy will not sell off its company.” However, an agreement was reached in the end.
What will Lufthansa do with Ita and Rome airport?
First of all, with this transaction, Lufthansa buys a share of the lucrative air transport market in Italy. With nearly 100 aircraft currently, Ita immediately becomes the largest foreign company in the group. Italy, the third largest economy in the EU, traditionally has strong ties with America and is also one of the main destinations for many international tourists.
The modern Rome Fiumicino Airport will become the sixth southernmost hub of the vast Lufthansa Group, which already brings together the former national airlines of Germany, Austria, Belgium and Switzerland under its roof. Spohr mainly aims to expand the network to South America, but Africa and Asia also offer market opportunities./ceb/DP/zb
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