It has been three months since the failed Alitalia ceased to exist to give birth to the Italian government’s new project ITA Airways, or Italia Trasporto Aereo. Now Lufthansa has submitted a proposal to include it in the Group, which would involve buying between 15% and 40% of the Italian company.
According to il Messaggero, the German holding company is seeking to compete with the Air France-KLM-Delta consortium to take over ITA Airways, where it includes commercial cooperation in terms of flight schedules, sales and code-sharing, and the exploitation of synergies such as the purchase of aircraft and maintenance. It also includes expanding Rome/Fiumicino International Airport into a truly international hub.
See also: ITA Airways sees in Lufthansa Group a “rich and attractive partner”
Germans love Italy
Lufthansa has been for several years flirting with the Italian market. One of its last attempts was Lufthansa Italia S.p.A between 2008 and 2011, based in Milan/Malpensa (MXP), but at the time it pulled out due to economic difficulties. In response to this decision, it increased its flights between Germany and Italy, through regional carrier Air Dolomiti.
Air Dolomiti, based in the Province of Verona, is controlled by the German group and has been the only way to stay within the Italian market, largely dominated by low-cost airlines.
According to Affari Italieni, the German company kept a close eye on Alitalia’s moves, and during its last crisis was stalking the Italian airline to be its last-minute lifeline. However, in January 2020 Lufthansa walked away from any deal.
The Italian government’s decision to transform ITA Airways in a new direction, betting on cheaper aircraft, quality services, and presuming that they can count on accounts in order, attracted back the interest of the Lufthansa Group to resume negotiations.
Getting rid of rivals and a war brewing
After the United States, Italy is Lufthansa’s most important market, but it will have to overcome major obstacles, including high competition from ultra-low-cost and low-cost airlines. In addition, this decision would also allow the Air France-KLM-Delta group, which belongs to Skyteam, to move away from Italy.
See also: ITA Airways and Delta Airlines sign codeshare agreement
Alfredo Altavilla, ITA’s President, told German media Airliners.de about a week ago that “It would be a mistake to remain independent because we would always be too small compared to the three big airline groups operating in Europe”.
Meanwhile, Lufthansa still has until the summer to make a decision. In the meantime, ITA Airways will remain in Skyteam, however, it only has a 12-month agreement, according to Corriere della Sera, before having to renew with the alliance.
See also: ITA doesn’t change a thing, signs codeshare with Air France/KLM and Etihad
Should ITA stay with Skyteam, Delta Air Lines along with Air France-KLM will work to enter into a deeper partnership with Virgin Atlantic. But Lufthansa’s offer is tempting, and the year is just beginning.
