On 31 January, the new Strategic Plan of Alitalia’s successor ITA Airways will be presented to the Board of Directors. Furthermore, the so-called Data Room will be opened to allow potential partners to examine both the financial and industrial conditions of the carrier.
What is Lufthansa’s plan?
It is thought that Lufthansa is more than likely to buy up to 40% of the NewCo ITA Airways, which is now entirely owned by the Italian Ministry of Economics and Finance (MEF).
After years of partnership with the Franco-Dutch group Air France-KLM, entering the Lufthansa Group would change the Italian national carrier’s strategy and role in the European aviation market. Such a significant change would be in line with the request of discontinuity with the troubled Alitalia imposed by Bruxelles before the go-ahead was given to the birth of the NewCo.
Lufthansa sees great potential in Rome Fiumicino Leonardo da Vinci Airport, which would be turned into a hub for flights to Africa and some destinations in the Americas, especially in the South part of the continent. Moreover, ITA Airways would enter the Transatlantic Joint Venture with United Airlines and Air Canada, with a consequent expansion of its destinations. Lastly, ITA Airways would enter the Lufthansa Group infrastructure, which would allow for significant cost reductions.
Being part of the Lufthansa Group would also help ITA Airways develop its position in a market in which it is now too small to compete. Furthermore, the German Group lays a lot of importance on relevant developing themes, such as the industry’s sustainable development, achieved thanks to the employment of modern and fuel-efficient fleets and the adoption of sustainable aviation fuel, or SAF.
No Confirmation From ITA Airways
ITA Airways has not confirmed the partnership yet. Likely, the confirmation will not arrive at least until after the end of the month, when other potential partners will have access to financial and industrial information on the airline to consider the proposal of a partnership.
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