Joining ITA Airways
Lufthansa faces powerful competition
03/10/2022 10:03 am
Together with the Swiss shipping group MSC, Lufthansa is very interested in investing in the Italian airline ITA Airways. But the group is not alone in this. A formidable competitor is already depositing its ambitions with the Italian government.
According to a newspaper report, the US airline Delta and the Franco-Dutch Air France-KLM are considering investing in the Alitalia successor ITA Airways. The two airlines had expressed their interest in a majority stake in ITA in a letter to the Italian government, the newspaper “La Repubblica” reported, citing a person from the government.
In addition, another international fund that already invests in low-cost airlines is interested. Air France-KLM, Delta and Virgin Atlantic said in an email that they wanted to work with the Italian airline’s new management to deepen their cooperation. Lufthansa, together with the Swiss shipping group MSC, had also expressed interest in a majority stake in ITA.
Lufthansa boss Carsten Spohr had doubts about joining the Italian state airline ITA Airways last week. “We know what we’re doing in Italy, don’t worry.” Lufthansa would never have invested in ITA’s predecessor, Alitalia, which was chronically in deficit. But the new airline went through a restructuring like the current subsidiaries Swiss, Brussels or Austrian Airlines before Lufthansa took over. “I listen to my shareholders – don’t worry, we know the legacy.”
Spohr made it clear that for Lufthansa itself, at best, a minority stake is an option. The group is a long way from a majority takeover. For Lufthansa, Italy is the most important European foreign market. As the market leader for long-haul flights in Italy, Lufthansa is a good partner for ITA.