Ita Airways, Lufthansa will invest 830 million and relaunch the Alitalia brand – Corriere.it

Lufthansa’s total investment in Ita Airways at the end of the operation will be approximately 830 million euros and divided into three phases. what he learns the Corriere della Sera from government sources familiar with the dossier. The first phase – between the end of 2023 and the beginning of 2024, after the OK from the EU Antitrust – provides for the disbursement of 325 million euros to acquire 41% of the Italian carrier. Before that moment, in the coming weeks, the Treasury will be called upon to pay the last installment of the public loan (250 million) authorized by the EU for a total of 1.35 billion.

The other stages

The second phase of Lufthansa in Italy establishes a check for another 325 million, in 2026-2027, for 49%, plus a hundred million bonus for achieving the objectives set by the plan. In the third stage, in 2028, the Germans will have to pay the ministry around 80 million for the remaining 10%. As soon as possible, the German giant – which in 2022 recorded almost 33 billion euros in revenues – will start the commercial and operational synergies machine that will lead the airline first to reach operating break-even, then to record the first profit in its history. In the Mef-Lufthansa Equita operation, he acted as the ministry’s exclusive financial advisor.

The synergies

It is also expected that Ita will start codeshare flights in the coming weeks with the companies of the Lufthansa group and partner companies, a move that anticipates the transition to the international Star Alliance alliance and entry into the transatlantic joint venture that the German group has with United Airlines and Air Canada. The latter two will take some time, especially the joint venture which will need the green light from the US Department of Transportation.

The change of pace with Giorgetti

The turning point on Ita – 71 aircraft, 3,900 employees and 634 million euros in losses accumulated from 15 October 2021 to 31 December 2022 – came last autumn when Minister Giancarlo Giorgetti took office in the Treasury. he was the one who took over the dossier, decided to interrupt the negotiations with the American fund Certares which did not give industrial guarantees and brought Lufthansa back to the table to try to make the Italian company survive and then make it grow, trying to increase connectivity of Italy. The negotiations were managed by the president of Ita Antonino Turicchi and the head of strategies of Lufthansa Joerg Eberhart, former number one of Air Dolomiti with German and Italian passports.

The hub of Rome

Among the topics touched upon there was also the Alitalia brand purchased for 90 million euros by Ita and not yet used. it is probable that Lufthansa will put it back on the liveries when the Italian airline is back to making profits. Another topic dealt with was that of airports. Lufthansa will make Rome Fiumicino one of its intercontinental hubs, especially for flights to Latin America, Africa and Asia. A role, however, will also be played by Milan Linate (where business traffic passes) and Malpensa.

The changes at the top of Ita

Ita’s shareholders’ meeting is expected in the next few days: the current board of directors – in prorogatio – will thus be replaced by a new one, again with five members: Turicchi will be confirmed as president, while barring twists and turns a new managing director should arrive who will take the place of the current one, Fabio Lazzerini (in office since the birth of the company), who also covers the role of general manager of the Italian carrier.