For the past fortnight or so, the Italian press has been buzzing with rumours about a future partner for Italy's national airline ITA. This new airline, born from the ashes of the former Alitalia, took off in October.. But it knows from the outset that it has little chance of surviving on its own in a highly competitive domestic and European market.
ITA looking for partners
The "new" Alitalia seems to be looking for a solid alliance. This is confirmed by Executive Chairman of ITA Airways, Alfredo Altavilla : " ITA needs to be integrated into an alliance on equal terms, unlike in the past.. It must be a long-term industrial solution that guarantees growth and positive economic results".
" Our customers see us as the most competitive airline in Europe in terms of base costs. At the moment, we are flexible by definition and we have a fleet and a network whose size lends itself very easily to integration within a larger entity. That's what makes us particularly attractive", he explained in an interview with the daily newspaper Today Economia.
Just over a month after his baptism, ITA had already chosen to cooperate with the Skyteam allianceas Alitalia did in its time. This agreement is only valid for one year. And it is based above all on the joint venture on the North Atlantic. Which also includes Virgin Atlantic.
ITA is looking for a solid partner and investor. And the names circulating about a potential partner mention both Air France and Lufthansa. For some time there had been talk of Delta Air Lines, but the latter has officially denied any intention of acquiring a stake in the Italian airline.
Air France favoured by the Italian government?
According to the daily newspaper Corriere della Sera, Air France currently has a slight advantage over Lufthansa in the eyes of Italian politicians. The French company is a long-standing partner. There are obviously more cultural affinities between Italians and French than there are with Germans. For its part, Air France is particularly interested in the Milan hub, with its potential for business traffic.
Franco-Italian industry sources told the Corriere della Sera that Paris is considering a "creative" way of acquiring a stake in Ita Airways. Provided that negotiations with the new Italian airline are concluded with an agreement.
Furthermore, it seems that Pieter Elbers' departure in 2023 would remove a major obstacle. Corriere reveals that the current CEO of KLM is strongly opposed to Air France-KLM taking a stake in ITA. As he was in his time in Alitalia.
Lufthansa Group, a solid partner
For its part, the Lufthansa has already indicated that it wants to take up to 40% of ITA's capital.. The German company argues that it offers unrivalled solidity. Questioned by Corriere della SeraA spokesman said that Lufthansa was "available for a partnership with Ita Airways". According to the company, Lufthansa will first conclude a commercial alliance before acquiring a stake in the Italian carrier in a few years' time.. ITA would retain its identity in the same way as the Austrian Airlines and Swiss subsidiaries do today.
On Monday 24 January, the Italian airline confirmed the German group's interest. Lufthansa, in partnership with the Swiss shipping company MSC, is offering to take a 40% stake.
ITA has already announced its roadmap for attracting potential investors. According to company executives, ITA's Board of Directors is expected to approve a revised industrial plan on 31 January. This will include an update of the figures and scenarios, particularly in view of the Omicron variant. In early February, ITA could open a "virtual data room" to potential partners which would enable them to assess the carrier.
But it will probably be necessary wait until 2023 for a final decision. There will be elections in Italy that year. And a new government could put everything back on track.
