[AMcWhirter]

[quote quote=1196506]o this publication which beat the other two by two days…[/quote]

Hello transtraxman,

Of course I could have posted the news earlier but consider it was a weekend and our copy had already been finalised.

In any case would a two day delay have made any difference ?

As you note “There could well be protected fight over this airline.”

You may have seen one reader posted a link to another piece saying that IAG was also interested. That fact had not been noted by either of the other two publications.

[transtraxman]

[postquote quote=1196513]

You misquote me in your post. I said not “protected fight” but …”There could well be a protracted fight over this airline, ITA.”

The mention of IAG being mentioned as interested in purchasing ITA was said by myself.In my post, #1170126, on this thread(17-12-21), I suggested an IAG interest in ITA without quoting any sources. It was pure speculation. However, it has since come to my notice that ch-aviation today (12-1-22) published an article about the interest in ITA. Headlined “Lufthansa, IAG jostle for stake in Italy’s ITA Airways.” The link is …….

https://www.ch-aviation.com/portal/news/111496-lufthansa-iag-jostle-for-stake-in-italys-ita-airways

I still hold the view that airline consolidation in Europe will necessarily occur, especially after the failed attempted takeover of Air Europa by IAG. It will be and should be a great necessity of IAG to make an important move in the consolidation of airlines. My view is that IAG is better served by looking more northwards than ITA in Italy. We shall have to see.

By the way: Lufthansa might well be flush with cash to manouver as it wishes but it seems that the AirFrance/KLM group is in serious trouble. ch-aviation has also reported today(12-1-22) “Air France-KLM needs billions to remain top player – report”.

https://www.ch-aviation.com/portal/news/111483-air-france-klm-needs-billions-to-remain-top-player-report

That is a telling document. What do the readers think?

[AMcWhirter]

[quote quote=1196616]By the way: Lufthansa might well be flush with cash to manouver as it wishes but it seems that the AirFrance/KLM group is in serious trouble. ch-aviation has also reported today(12-1-22) “Air France-KLM needs billions to remain top player – report”.

https://www.ch-aviation.com/portal/news/111483-air-france-klm-needs-billions-to-remain-top-player-report

That is a telling document. What do the readers think?[/quote]

Thanks for providing the above link re the financial issues at AF/KLM.

Maybe that’s why these two carriers are raising cash with their Sustainable Aviation Fuel Levy (SAF) about which Tom reported a couple of days ago.

SAF is being placed on all ticket sales in France and The Netherlands.

It varies from Euros 1 to Euros 12 per ticket depending on travel class and distance.

[transtraxman]

Apparently there is no smoke without fire. The more you deny the rumours, the more you become embroiled.
“Delta denies interest in investing in Italy’s ITA Airways,” (ch-aviation, 17-1-22)

https://www.ch-aviation.com/portal/news/111647-delta-denies-interest-in-investing-in-italys-ita-airways

Following Delta´s expansion into other airlines it is not surprising its denials are not believed.
The article puts Delta into the same pot as Lufthansa and IAG as airline groups interested in taking over ITA in some way, with formal talks likely to start sometime in April. The Italian Government is principally concerned that there be no diminishing of ITA nor the intended expansion of the Rome and Milan hubs. So where will ITA end up?

[AMcWhirter]

The name “Alitalia” may yet return ! A decision by the ITA board will be made on January 31.

Netherlands’ website Luchtvaartnieuws [NL] quotes from Italy’s Corriere delle Sera that ITA Airways lost Euros 170 million in 2.5 months.

Turnover was just Euros 86 million.

ITA Airways lijdt 170 miljoen euro verlies in 2,5 maand en wil naam Alitalia laten terugkeren https://t.co/CRMgh2hpBL pic.twitter.com/2AhLrv5ZIZ

— Luchtvaartnieuws.nl (@luchtvaart) January 21, 2022

[AMcWhirter]

Today’s news is that Lufthansa is poised to acquire 40 per cent of ITA Airways.

The deal is expected to be announced next week.

Not before time. As I noted in the above posting ITA Airways lost a substantial amount in its first couple of months of operation.

Via Reuters.

https://www.reuters.com/business/aerospace-defense/germanys-lufthansa-is-set-buy-40-stake-alitalias-successor-ita-paper-2022-01-22/?taid=61ebed1fe941150001c72e64&utm_campaign=trueAnthem:+Trending+Content&utm_medium=trueAnthem&utm_source=twitter

[transtraxman]

Simple Flying (22-1-22) and aviation24.be (21 -1-22) are two pages which have also mentioned the resurgence of the name Alitalia. They both agree that the name will be reused for either the European Division of ITA, or could be reintroduced for the transcontinental division. This latter seems to be a more likely option as it is more well known internationally on other continents. This also due to the probability that all the planes have not been repainted yet from the old Alitalia colours.

ITA And The Alitalia Brand: What’s Going On?

Surprise (or not?): the Alitalia brand will fly again in March

Though the reporters seem to assume that the decision is taken it will only be on 31st January that we shall know for sure.

[AMcWhirter]

Germany’s media is rather more cautious.

Aerotelegraph [DE] reports “Lufthansa’s entry is subject to EU approval. The plan includes more jobs, more planes and the hub being Rome (FCO) with the focus on [destinations] in Africa and the US.”

However it notes “There have been similar rumours from Italy before.”

Neue Gerüchte über Einstieg von #Lufthansa bei #ITA https://t.co/RGH5mwr3nd

— aeroTELEGRAPH (@aeroTELEGRAPH) January 23, 2022

[transtraxman]

…..
However, Simple Flying is speculating that a deal is ready to be signed between the Italian Government and Lufthansa.
“Lufthansa Expected To Take 40% Stake In Italy’s ITA Soon,” (Simple Flying, 23-1-22)

Lufthansa Expected To Take 40% Stake In Italy’s ITA Soon

…..this announcement to take a minority but substantial shareholding is expected to take place this coming week – this would be even before the much spoken about ITA board meeting on 31st Jan.
Apparently DELTA, Skyteam´s dominant US partner, is reported as saying it has no interest in investing in ITA. Even if Lufthansa invests and later decides to retreat, it still has its own Italian subsidiary, Air Dolomiti, with which it could use to implement any lessons learnt from its investment in ITA and thus help win its commercial battles in Italy.
Obviously, Skyteam´s loss will be Star Alliance´s gain. However, since AirFrance/KLM is in a very weak position(enough to be a worry but not enough for the French (principally) and Dutch Governments to ignore and so would help their flag carriers). That leaves IAG to make a move – this could be a very necessary one after the unsuccessful takeover of Air Europa. Here IAG could make, all in this a counter move to fill in at least one of its areas of low representation. One cannot forget that the consolidation of the European air industry is an ongoing necessary step in air traffic development.

[AMcWhirter]

Latest news this evening is the confirmation that both Lufthansa and cruise operator MSC want to acquire a majority stake in ITA Airways.

Lufthansa will mit Schifffahrtsriese MSC Mehrheit von ITA Airways

[Tom Otley]

There’s an English version on Bloomberg (paywall)

The World’s Largest Container Line Makes a Play for Italian Air Carrier

Container line sees synergies with cargo, cruise businesses
German carrier has long been viewed as likely ally for ITA

The article says
“The Geneva-based shipper, owned by the Italian Aponte family, recently became the world’s largest container line in an industry flush with cash after pandemic-driven demand for consumer goods propelled it to the most profitable year ever.”

This might be a very quick way of reducing its tax bill on those profits !

[FaroFlyer]

[postquote quote=1199321]

Hi Tom,

It may also be a way of making a small fortune, by investing a large one:-(

1 user thanked author for this post.

Tom Otley

[AMcWhirter]

Maybe it’s my mistake but I thought MSC was a Geneva-based cruise firm.

As you can see here MSC operates some very large cruise vessels.

https://www.msccruises.co.uk/cruises/ships

[transtraxman]

As ITA increases its fleet, it will replace B777s on its routes to Buenos Aires and Tokyo with four 3 year old A350s in storage at Teruel(Spain).
“Italy’s ITA Airways to add first A350s from 2Q22,” (ch-aviation, 27-1-22)

https://www.ch-aviation.com/portal/news/112042-italys-ita-airways-to-add-first-a350s-from-2q22

[transtraxman]

“Rome launches sale of ITA Airways majority stake”, (ch-aviation, 15-02-22)

https://www.ch-aviation.com/portal/news/112553-rome-launches-sale-of-ita-airways-majority-stake

So it seems the Lufthansa/MSC connection is going ahead with its interest……………….
“Despite MSC’s and Lufthansa’s request for a 90-day period of exclusivity in any negotiations, in principal ITA Airways must open up its data room of sensitive financial documents to all interested parties.”
“Other suitors may emerge in the coming weeks. Competing groups IAG International Airlines Group, Lufthansa, and Air France-KLM with Delta Air Lines have all expressed a desire to become a partner for ITA, but some currently have more resources to do so than others.” — that seems to sideline AirFrance/KLM.

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