Final ITA-Lufthansa Decision Tempting for Low-Cost Carriers

Ita lufthansa = image courtesy of aviacionline
image courtesy of aviacionline

Easyjet and Volotea are the airlines in pole position for the couple of slots that ITA Airways and Lufthansa are willing to leave free as remedies proposed to the EU Commission, which will issue the verdict by July 4 to obtain the green light for the marriage.

The 2 airlines were indicated by the “promessi sposi” (betrothed) as competing carriers to whom to entrust an adequate number of flights on Milan-Linate and Rome-Fiumicino ROUTES. easyjet, which boasts a movement of 16.3 million passengers in Italy, and Volotea, with 3.4 million users, hold very small market shares compared to Ryanair, which currently represents the airline with the largest share of passengers on most Italian airports.

In detail, the new counterproposal document that the Ministry of Economy and Finance of Italy (MEF), representative for ITA, and the Lufthansa Group presented in recent days in Brussels, foresee the transfer of a total of 15 pairs of daily slots, including the 6 strategic routes on Linate, namely Frankfurt, Munich, Brussels, Hamburg, Dusseldorf, and Vienna (the latter is not yet operated but was included in the Lufthansa plans), and 5 key routes on Fiumicino of which the slots concern the 5 routes on Frankfurt, Munich, Zurich, Brussels, and Vienna. The other 4 connections to be surrendered would concern other minor intra-European routes but still attractive for other competing carriers.

The stalemate remains the transfer of intercontinental routes to North America and Canada, requested by the EU Commission and which neither Lufthansa nor ITA intend to renounce, given that the volume of traffic generated especially towards the USA, by both carriers, generates hundreds of millions in ticket revenue. 

The trick, hypothesized by ITA-Lufthansa in the new remedies document, is to suspend for 3 years the aggregation of ITA into Star Alliance and the renunciation of other possible joint ventures that could lead to the prefiguration of advantageous positions in the long haul, which is a conquering ground for all the major airlines with an international vocation.

Another indiscretion, also endorsed by those directly involved (MEF and Lufthansa top management) is that the final decision foreseen for the week June 10-15 will clarify the orientations of Brussels and any last counter-moves by potential partners to save the entire operation which between the initial transfer of the 41% of ITA (worth 325 million euros) and subsequent acquisitions of Lufthansa, up to 90% of shares, has a total value of approximately 850 million euros.

During the previous week the EU Competition Commissioner, Margrethe Vestager, spoke of a “discussion still ongoing” while the unions of ITA-Lufthansa asked the government to be summoned to address the topic “urgently.”


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(eTN): Final ITA-Lufthansa Decision Tempting for Low-Cost Carriers | re-post license post content


 

About the author

Mario Masciullo - eTN Italy

Mario is a veteran in the travel industry.
His experience extends worldwide since 1960 when at the age of 21 he started exploring Japan, Hong Kong, and Thailand.
Mario has seen the World Tourism develop up to date and witnessed the
destruction of the root/testimony of the past of a good number of countries in favor of modernity/progress.
During the last 20 years Mario's travel experience has concentrated in South East Asia and of late included the Indian Sub Continent.

Part of Mario's work experience includes multi activities in the Civil Aviation
field concluded after organizing the kik off of for Malaysia Singapore Airlines in Italy as an Institutor and continued for 16 years in the role of Sales /Marketing Manager Italy for Singapore Airlines after the split of the two governments in October 1972.

Mario's official Journalist license is by the "National Order of Journalists Rome, Italy in 1977.

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