Together with Lufthansa, Mediterranean Shipping Company (MSC), the world's largest shipping company in terms of transport capacity, wants to take over the Italian newcomer, Italia Transporto Aereo - ITA Airways. The players involved are close to an agreement, Italian media report, citing internal circles. In the case of MSC, it would be its first venture into air transport. Partner Lufthansa would provide the required expertise.
On 31JAN22, the management teams of MSC and Lufthansa, as well as those of Air France/KLM, will eagerly be awaiting a call. This will come from Rome. There, the ITA board, including representatives of the Italian state, will present the results of a strategic plan, the central theme of which is the integration of ITA into one of the two competing investor groups. This has been preceded by intensive negotiations, during which ITA President, Alfredo Altavilla, clearly articulated his preference for a merger with Lufthansa (https://www.cargoforwarder.eu/2022/01/11/ita-opens-its-doors-to-lufthansa/).
The decision nears
Until now, Lufthansa had left open the possibility of acquiring stakes in the Italian newcomer, which is still state-owned (100%), the German carrier confirmed to CargoForwarder in a telephone
call a short time ago. However, yesterday (24JAN22), the airline managers took a U-turn, consenting a future role as a “commercial partner” of MSC which has declared its determination to
purchase and secure a majority stake in ITA. Prior to this announcement, the duo had sent an expression of interest to ITA's Board of Directors, on which the controllers plan to decide during
their 31JAN22 meeting.
According to Alfredo Altavilla, Chairman of the ITA Board of Directors, the decision has already been made. The expression of interest by MSC/LH is a “great success,” he said. In an
interview with the Handelsblatt newspaper, Altavilla stressed that the offer is “very convincing and extremely interesting.”
Second biggest market
Newcomer ITA was founded in mid-October last year, succeeding the bankrupt state carrier, Alitalia. Financial and operational details of the intended takeover are to be finalized within a time
frame of 3 months - provided the ITA-controllers consent the offer.
Lufthansa has tried to set foot on the Italian passenger and cargo market for 15 long years. In terms of travelers, it is the second most important external market for the airline after the USA.
So far, however, Lufthansa has remained very hesitant when asked about its Italian strategy. Fact is that the airline refused to invest in troubled Alitalia due to the enormous financial risk,
the outdated structure of the totally overstaffed airline, and the constant walkouts of the employees.
Since Alitalia is gone, the situation is much more comfortable for potential investors. ITA is much leaner compared to its predecessor, operating a fleet of 42 aircraft (39 narrobody jetliners, 3
widebody A33XWB) with 2,950 headcounts standing on the payroll. It concentrates on a dual hub strategy, with Rome-Fiumicino and Milan-Linate being the airline’s operational centers.
From Sky to Star
Lufthansa plans to develop Fiumicino as a gateway for ITA, enabling the carrier to operate both pan-European and long-haul flights. By doing so, Air Dolomiti’s activities would be complemented;
another member airline belonging to the Lufthansa cosmos. At the same time, the ITA move would strengthen the Group’s cargo business, because Milan in particular, but also Rome, are important
origin and transit airports for air freight shipments. In addition, the acquisition of Bollore's African business by MSC should open a variety of cargo options for LH Cargo, should it also manage
ITA's cargo operations following the example of Brussels Airlines and Austria Airlines.
Provided the Board of Directors may decide in favor of MSC/LH, ITA would have to terminate its membership in the SkyTeam group and switch to competitor Star Alliance.
Heiner Siegmund
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