Tuesday, 7 January 2020

The future of Alitalia could be in German hands........

 The future of the loss-making debt-riddled Italian national carrier Alitalia could be turned around and in German hands, if Lufthansa gets its way with a partnership deal. 

A commercial tie-up between the German carrier and Italian airline would boost revenues at Alitalia by at least €100 million a year in the medium term, a Lufthansa executive said on today. Lufthansa needs a hub in Southern Europe and Rome’s Fiumicino airport could be the right one, Joerg Eberhart, the president and CEO of Lufthansa’s unit Air Dolomiti, told Italy’s Chamber of Deputies Transport Committee in a hearing.

He added that Alitalia should join Lufthansa in the Star Alliance, the world’s largest group of carriers, that allows them to cooperate in marketing routes and pricing to travellers. Eberhart earlier on Tuesday told the committee that Lufthansa offered Alitalia a commercial partnership but was not ready to invest in it, reported Reuters. 

Eberhart also said what commentators in the airline industry have been saying for months, "We are convinced that a profound restructuring of Alitalia is inevitable. - Only in this way will it be gain the time needed and starting from a position of strength will have a free choice between the three strongest systems in Europe, Lufthansa, IAG and Air France,".

Alitalia has 'burned up around €300 million a year during the period of extraordinary administration the firm has been in for the last three or so years. According to recent statements by the Italian Industry Minister Stefano Patuanelli there will be no more government money for the airline, which if no buyer or investor is found could end flying operations by the middle of the year. 

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