AIRLINE REVIEW ITA Airways
ALMOST TWO YEARS AFTER its October 2021 inaugural flight , we can say that ITA Airways ( AZ ) is here to stay . The day that decided the airline ’ s future was May 25 this year , as the Italian Ministry of Economy and Finance finalized a long-sought deal with Lufthansa ( LH ), paving the way for the German giant to take part-ownership in the Romebased carrier , founded out of the ruins of Italy ’ s failed flagship Alitalia . The agreement , which is expected to be approved by Italian and European regulators by the end of summer , involves Lufthansa ’ s immediate purchase of 41 % of ITA and makes provisions for the possibility of the German carrier increasing its share of the Italian airline to up to 90 %.
As part of the deal , the Italian Government has committed to a € 250 million capital increase of ITA Airways , the last instalment of the € 1.35 billion of public funds used to help start the airline in 2021 . Lufthansa has agreed to pay € 325 million for its entry into ITA Airways . The purchase price of the remaining shares will be based on how the Italian carrier ’ s business develops .
“ Today ’ s agreement will lead to a win-win situation for Italy , ITA Airways , and Lufthansa Group ,” said Lufthansa ’ s CEO , Carsten Spohr . “ And it is good news for Italian consumers and for Europe because a stronger ITA will invigorate competition in the European market . As a young company with a modern fleet , and with its efficient and expanding hub in Rome , ITA is a perfect fit for Lufthansa Group . At the same time , this investment will enable us to continue our growth in one of our most important markets ”
Minister Giancarlo Giorgetti highlighted the fact that “ today , we finally got past an issue which has adversely influenced commercial aviation in Italy for 30 years .” For decades , Alitalia had struggled to make a profit due to government and political interference and , when deregulation led to the arrival of low-cost competitors in the late 1990s , its losses had grown even more .
Giorgetti emphasized that “ ITA Airways ’ industrial plan foresees substantial growth during the next four years .” Indeed , it does . The all-Airbus
1 ITA Airways managed to acquire its Airbus A350s with pretty short notice , as it picked up planes that were supposed to go to China ’ s Hainan Airlines , but were not taken up . // FRANCESCO R . CECCHETTI
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