German flag-carrier Lufthansa is already preparing for a potential takeover of ITA, the successor to Alitalia. Speaking to Corriere della Sera, Lufthansa CEO Carsten Spohr expressed his interest in launching a Mediterranean hub at Rome’s Fiumicino airport.
The executive shared the following:
“Obviously. Italy is a strong market and Rome could play a very important role within Lufthansa by integrating our system with a southern hub for the group […] Italy is a new hub for Lufthansa. We are expanding our business in the country to strengthen our position as the leading carrier of intercontinental connections.”
Reports of a €1.2 billion expression of interest (EOI) from Lufthansa and MSC were initially covered in January, with details alleged to include the development of Fiumicino Airport into a Lufthansa hub. Spohr reaffirmed Lufthansa’s commitment to its collaboration with MSC, referring to it as “the perfect partner” for ITA and dismissing rumors that MSC may align with Air France-KLM which has launched a separate EOI in ITA.
Lufthansa takeover
If Lufthansa is to take ownership of ITA, Spohr noted that the airline would not lose its Italian identity, much like Austrian Airlines, SWISS, and Brussels Airlines, which have all continued to retain their branding and identity under Lufthansa.
The German carrier first expressed interest in taking a controlling stake in ITA alongside shipping giant MSC back in January. At present, Lufthansa is waiting for the opening of ITA’s data room to decide whether it will invest in the Italian airline from the start or following a takeover by MSC.
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Competition remains from Air France-KLM, having submitted a separate EOI to the Italian government to take a majority stake in ITA back in March. Air France-KLM previously owned a 25% stake in Alitalia, though it was denied purchasing the airline in full by the former Prime Minister of Italy. Delta is also set to join the deal as a “strategic partner,” though it will not take a stake in the airline.
Spohr declined to comment on Air France-KLM's EOI, adding that Lufthansa is only focusing on its “attractive offer” alongside MSC.
ITA notably joined the Air France-KLM alliance, SkyTeam, back in October 2021, subsequently signing a codeshare agreement with KLM in December. Speaking to Simple Flying, a spokesperson for KLM said:
“Air France-KLM, Delta, and Virgin Atlantic are committed to fostering closer ties with ITA and building upon the successful commercial partnership the airlines have formed."
Options open?
Despite ITA’s close alignment with Air France-KLM and SkyTeam, it seems the carrier only has eyes for Lufthansa. Speaking to Handelsblatt, ITA Airways board member Alfredo Altavilla noted that the arrangement with SkyTeam is only signed for a period of one year, adding:
“We are a pretty bachelorette who has many admirers. We hope that Lufthansa will be one of those handsome and rich admirers who might be interested in ITA Airways.”
Further attention
An additional third expression of interest has arrived from an unnamed international group that has previously invested in “the world’s most important low-cost carriers”, reported to be Indigo Partners. Financial details of the deal are not known; however, sources speaking to Corriere della Sera have claimed it is “extremely serious and detailed”, with a projected plan of action prepared for if it wins the process.
Formal negotiations have yet to start, with the Italian government anticipating a closure of the deal by mid-June 2022.
What do you think of Lufthansa’s plan for Rome Airport? Is it too early for the carrier to be making plans? Let us know in the comments.
Sources: Corriere della Sera, Handelsblatt