Following the agreement with the Ministry of Economy and Finance, Lufthansa will take control of 40% of Ita Airways, and this ratio will increase to majority control of the German giant in the coming years. So what will change for the Italian-flagged carrier? Mef will still remain “on board”, as confirmed by Lufthansa’s CEO Carsten Spohr: “The transaction between Lufthansa and Mef regarding the sale of the minority stake in Ita is expected to be completed by the end of this year. The operational responsibility for the management of the Ita Airways plan will appoint the general manager It will belong to the board of directors, which Lufthansa can count on another member.”
Eng, what changes with the entry of Lufthansa?
“On the operational front – continued Lufthansa CEO – a shift for short-distance feeding will be possible, allowing passengers to leave Zurich or Frankfurt instead of Paris or Amsterdam”. As for Italian airports, Lufthansa’s managing director assumes “strengthening long-haul flights to Rome”, while Milan has high hopes “as a destination for leisure and business.” Not counting “the agreement with Ferrovie dello Stato allows us to transfer passengers to the high-speed rail network”.
“Ita, not Alitalia, has new rules that point it in the right direction: we didn’t invest in Alitalia at the time because we thought it was uninteresting to our shareholders, but today we believe it will.” value for all”. Also “thanks to a competitive cost base, we at Lufthansa are confident that Ita will become profitable. This will not be an overnight change, some changes will take longer, but will happen soon. We believe that Ita will return. Profit in 2025”. this is a move that will help us become more international and less dependent on our national market. Our decision was guided by an assessment of the risk we took with this investment: however, ITA has sufficient liquidity today and will receive the necessary funds to implement its development plans and keep the business going. However, we will not consolidate the results of ITA on the balance sheet ” We do not have to take over Lufthansa completely and we will take control of ITA only when the business becomes profitable.”
Fleet, prices and competition
Spohr also spoke about the news on ticket prices: “I’ll be honest, price wasn’t the key in this transaction: its value is strategic, but we think there’s the right balance between economic commitment and possible benefits.” Lufthansa’s first official declined to comment on the value of a possible acquisition for the remaining stake in the Italian company. Even if we consider reducing the price for the remainder”. The number of aircraft available will certainly increase: “By 2027, Ita’s fleet will grow from 66 to 94 aircraft: it will be a homogeneous fleet, complementing it the entire Lufthansa group will consist of Airbus aircraft, which means operationally. will enable us to achieve efficiency. The entire existing fleet is rented, and it is aimed to gradually increase the share of vehicles owned,” he said.
In conclusion, the German CEO also spoke of the competitive factor: “Ita is only the fourth largest company in the Italian market, where Ryanair has a dominant share. In Europe, Ita has the lowest share among national operators. Without major objections from the European Commission, it is a minority. “There is room to quickly close the acquisition of the stock. In Brussels, they will understand that with Ita’s strength, there will finally be real competition in the Italian market”.
Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
