What Does Lufthansa's Acquisition Mean For ITA Airways' Long-Haul Flights?

By Ivan PetrenkoJul 7, 2024 19:00 PMNews
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ITA Airways flight to Milan. Source: unsplash

Earlier this week, the European Commission approved Lufthansa's purchase of ITA Airways, meaning Lufthansa will soon fully own the Italian national carrier. This acquisition will add ITA Airways to Lufthansa's group of airlines, including Austrian Airlines, SWISS, and Brussels Airlines. The agreement has significant implications for the Italian aviation industry and global connections to Italy.

Italy-based transport consultant Andrea Giuricin emphasized the strategic importance of this move. He highlighted that Lufthansa’s support would bolster Italy's aviation sector, particularly at Rome Fiumicino Airport, ITA Airways' base. This collaboration aims to enhance long-haul connectivity to South America, North America, and Africa.

Lufthansa plans to establish a crucial hub at Rome's Fiumicino Airport. Lufthansa CEO Carsten Spohr stated that Rome's strategic location is ideal for connections to the southern regions of the world, such as Latin America and Africa, as well as the United States. This strategic positioning will allow ITA Airways to fill gaps in Lufthansa’s network, offering new long-haul routes that complement existing services.

ITA Airways has already expanded its long-haul network, recently launching flights to Dakar, Senegal, and announcing future routes to Bangkok. These expansions are crucial given the competitive landscape dominated by low-cost carriers. ITA Airways’ fleet includes A330ceos, A330neos, and Airbus A350s, enhancing its capacity to serve long-haul destinations effectively.

In South America, ITA Airways currently operates flights to Buenos Aires, Rio de Janeiro, and São Paulo. Giuricin noted the significant opportunity for growth in this region due to the large Italian diaspora in countries like Argentina and Brazil. Similarly, North America presents a substantial market, with millions of people of Italian descent residing in the United States and Canada.

Giuricin emphasized the importance of ITA Airways' Italian product and high-quality services, which are vital for success in the competitive long-haul market. Despite ITA Airways' relatively small market share, the partnership with Lufthansa and subsequent entry into Star Alliance and a transatlantic joint venture with United and Air Canada, anticipated for 2026-2027, are expected to strengthen its position.

The European Commission’s approval of the acquisition came with several concessions, including relinquishing slots at Milan Linate airport and allowing competitors to operate on key routes. Giuricin criticized the intercontinental concessions but acknowledged the fairness of the short-haul sector compromises.

As ITA Airways integrates into the Lufthansa Group, it is poised for significant growth, especially in intercontinental flights. With the potential for expansion at Rome-Fiumicino and strategic support from Lufthansa, ITA Airways is set to enhance Italy’s connectivity with the world.

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