Ita Airways, in 2022 red of 470 million. Lufthansa meetings in Rome – Corriere.it

Palazzo Chigi will address the privatization of Ita Airways in the coming days to make a point in particular on the discussions with Lufthansa. The government wants to go ahead with the sale of the majority of the Italian carrier. And the dossier is getting hotter also because the company – which took over from Alitalia thirteen months ago – is starting to close 2022 with a loss of almost 470 million euros. what they explain to Corriere della Sera three sources familiar with the numbers.

The timings

The intention of the executive is to find the square quickly – in the presence of a convincing offer and industrial plan – so as to guarantee more stable prospects for the company and its employees and for the country better intercontinental connectivity. Right now all eyes are focused on Lufthansa which since November 16 in the company’s data room is now 100% owned by the Treasury.

The expert sessions of the Germans

The Germans landed on Monday November 28 in Rome for a series of technical meetings with the managers of Ita to discuss finances, networks (ie the network of connections) and human resources. There are various issues to be resolved, explains those who follow the dossier, and the carrier’s accounts could be used by Lufthansa to reduce the sale price. Ita estimates to close 2022 with a negative Ebitda of 466 million euros, the sources say, while in 2023 the goal is to record a gross operating margin of -250 million.

The value of the company

As the months go by, the value of the company decreases, which prompts you to quickly find a partner. In mid-2023 Ita could reach a valuation of 250-300 million from the current 450-500 million (it was around one billion at the beginning of 2022). The executive is not willing to sell off the carrier, while the Germans need to convince shareholders of the benefits of investing in the company. It is no secret that synergies with the Italian airline would allow Lufthansa to use Rome Fiumicino – the nerve center of Italy – as a hub for flights to the southern hemisphere.

The data room

The group — also owner of Swiss, Austrian Airlines, Brussels Airlines, Eurowings, Air Dolomiti — is studying the documents contained in the data room and is working on revising the business plan in case it were to enter Italy. Sources familiar with the dossier clarify al Courier that the alleged new Lufthansa plan that appeared in the last few hours in some Italian media complete with photos is actually an extract from page 3 of the January 2022 memorandum of understanding between MSC and Lufthansa (see the document below, ed). The consortium then disbanded because the maritime colossus took a step backwards.

The analysis

Ita’s role in the Italian market is attractive for both Air France-KLM and Lufthansa, especially as regards the long-haul premium segment for those who travel both for work and for pleasure, he explains to Courier Neil Glynn, head of Air Control Tower, a consulting and analysis firm. But, he stresses, it’s important that any deal be structured to limit exposure to ITA’s potential manpower issues and related competitive challenges on short-haul flights. Not only. Glynn reminds that those who take Ita must not be distracted and must continue with their internal restructuring. A speech that applies both to Air France, within the group with KLM, and to Austrian Airlines, Brussels Airlines and Eurowings in the Lufthansa group.