This Thursday, negotiations between Lufthansa Group and the Italian Ministry of the Economy and Finance are to conclude, with an agreement set to be signed which is able to see the German organization take a 40% state within the state-owned Italian carrier.
This development concludes the lengthy discussions between the 2 organizations, which have already been prolonged multiple times over the past few months.
Photo: Vincenzo Pace | Easy Flying
Now, with the landmark purchase seemingly imminent, the German conglomerate prepares to expand into Italy, and people traveling to and from the boot-shaped nation can look ahead to increased connectivity with the remaining of the Lufthansa Group’s extensive network.
EU scrutiny still a possible issue
With negotiations nearing their conclusion, the long run of the Lufthansa takeover might be within the hands of the European Union’s Antitrust Chamber, which could take as much as 4 months to review the case.
While it could not seem that grave for an airline to amass a 40% stake in one other, the agreement between the 2 parties gives the German organization the choice to buy an extra 50-55% of the Italian carrier in 2026.
Photo: Leif Eirik Skaue/Shutterstock
Concerns have arisen that such a takeover could lead on the expanded Lufthansa Group to realize near-monopoly status in the realm. Specifically, ITA’s massive variety of landing slots at Milan Linate Airport and Rome’s Fiumicino Airport has been called to attention by regulators.
Likely, before approving the acquisition, EU regulators would require several antitrust measures to be put in place that might see ITA relinquish quite a lot of landing slots at their hub airports.
Lufthansa’s goals for ITA Airways
As Lufthansa Group looks towards the long run, the organization seeks to integrate ITA Airways into its network as seamlessly as possible and goals to capitalize on the various synergies that might emerge from the partnership.
The conglomerate, which incorporates a various array of carriers, will seek to regulate ITA’s existing route network to best fit the group’s needs as a complete, including latest services to multiple destinations in the US.
Starting this June, ITA will connect Rome to Miami and Washington, DC, with latest Airbus A330neo aircraft to be delivered in the approaching months. Soon after, on July 1st, the carrier will begin flying on to San Francisco with these latest aircraft.
Photo: Lufthansa Group
As increasingly more A330neo jets join the ITA fleet, the airline hopes so as to add Latest York-JFK, São Paulo, and Delhi to the carrier’s rapidly expanding route network. Now, passengers from the US will find it easier to book two-stop journeys to Germany and Italy on only one ticket.
Notably, ITA Airways is a member of SkyTeam, while Lufthansa currently maintains its position within the Star Alliance. Thus, we are able to expect ITA to affix the German carrier’s alliance shortly after the acquisition.
Moreover, ITA Airways can be the primary carrier in Lufthansa Group to not focus its operations in a German-speaking nation. Subsequently, the merger will bring a cultural transition away from the German-speaking areas of Europe for the carrier. Potentially, we may even see the conglomerate rebrand after the merger.
In the approaching months, Lufthansa Group can look ahead to expanding its network while travelers will reap the advantages of more efficient European travel.