2023-05-25 20:51:14
After several attempts, Lufthansa lands on the Italian market. In the gradual takeover of Ita Airways, the Italian state will remain on board for the time being.
Lufthansa expands to Italy. After months of negotiations, the German MDax group has agreed with the Italian state to take over a minority stake of 41 percent in the airline Ita Airways, as stated in a statement to the stock exchange on Thursday. For this purpose, Ita is to receive 325 million euros in equity from Lufthansa cash funds. The Italian state has also undertaken to contribute a further 250 million euros to the company.
Options have also been agreed that will enable Lufthansa to take over the remaining shares in ITA at a later date. The purchase price will depend on the business development of ITA Airways, the company announced. The contracts should be concluded “shortly”. The Italian media said on Monday that the state could hold a small stake of 5 to 10 percent longer so that it could continue to receive important first-hand information and exert influence.
Checking for possible distortion of competition
The deal is subject to competition law reviews at national and European level. The EU competition authorities should pay particular attention to whether supply monopolies are created at the airports in Rome and Milan.
Italia Trasporto Aereo (Ita), founded in 2020, took over the flight operations of the insolvent predecessor Alitalia in October 2021, but is not its legal successor. However, the new airline has secured take-off and landing rights as well as the Alitalia brand. The legendary name could possibly soon be reactivated under the new corporate umbrella.
Italophile Lufthansa strategy chief Jörg Eberhart, who has already headed the regional subsidiary Air Dolomiti active in northern Italy, is under discussion as the new Ita boss. He is to move into the five-strong Ita board of directors with another Lufthansa employee.
Red figures as a result of the corona pandemic
Last year, Ita Airways made a loss of 486 million euros with a turnover of almost 1.6 billion euros. At the end of March, the company cited the aftermath of the corona pandemic, the increased fuel costs as a result of the Ukraine war and the poor euro-dollar exchange rate as the reason for the red figures.
According to the Ministry of Finance, Ita currently has 71 aircraft and is expected to increase sales to 2.5 billion euros in the current year. For the end of 2027, 94 aircraft and a turnover of 4.1 billion euros are targeted. The workforce is to increase from the current 4,300 to more than 5,500 employees.
Lufthansa boss Carsten Spohr spoke of a win-win situation for Italy, Ita and his company. He wants to bring the lean Alitalia successor with its young fleet into the profit zone through higher capacity utilization, cheaper purchasing and better flight coordination. He said: “As part of the Lufthansa Group family, Ita can continue to develop into a sustainable and profitable airline connecting Italy to Europe and the world.”
After the antitrust review, the partial takeover could be completed as early as the summer. Lufthansa then wants to take over the operational management of what will then be the Group’s fifth network airline.
Lufthansa: Expansion wanted for a long time
Deutsche Lufthansa AG has already acquired the former state airlines of the neighboring countries of Switzerland, Austria and Belgium and continued to operate them as independent brands. The Belgian Sabena successor Brussels Airlines had taken over Lufthansa in two stages and initially also started with a minority. Rome is to become the sixth hub of the aviation group with the highest turnover in Europe. Another possible takeover target is the Portuguese Tap.
Lufthansa has wanted to gain a foothold beyond the Alps for many years. An attempt started in 2009 under the name Lufthansa Italia came to an end in 2011. At the moment, the group is only attracting transfer passengers from wealthy northern Italy to the Munich hub with its regional subsidiary Air Dolomiti. With Ita, Lufthansa is now acquiring market shares in an environment dominated by external low-cost airlines. The Italians are hoping for more economic security and an upgrade of their airports from the Kranich Group. (dpa)
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