Airline unions advocate for Lufthansa's merger with Ita
In a joint plea, various air transport unions urge the European Commission to expedite Lufthansa's entry into Italian state airline Ita. They believe this move is instrumental in bolstering Ita, securing employment, and maintaining favorable working conditions for staff.
Thursday saw the publication of a statement endorsed by three German, three Italian, and three Austrian-Swiss employee organizations. Lufthansa and the Italian government have been locked in a battle to secure EU Commission approval for the merger under competition law.
Media reports suggest that Brussels may require Lufthansa to reduce long-haul flights from Frankfurt and Munich as a prerequisite for approval. The MDax group aims to initially acquire a 41% stake in Ita for €325 million, with the goal of eventually controlling the entire company [1][4].
The unions argue that Lufthansa's integration with Ita could significantly enhance air traffic connections between Germany and Italy. Their call to action aims to expedite the approval process by EU authorities [1].
Public support for the merger is paramount due to the integration's far-reaching implications. The process involves alterations to loyalty programs, codesharing agreements, operational changes at German airport hubs, and investments in ITA Airways [1].
New leadership, led by CEO Jörg Eberhart, has organized a meeting with labor unions to address their concerns and ensure smooth integration and job security. The new management aims to expand the fleet, develop new routes, and harness Ita's strategic assets, such as its strong presence at Rome Fiumicino Airport and robust North American connections [2][4].
Upon approval by the European Commission, the acquisition is expected to reap numerous benefits. These include expanded networking opportunities, improved regional connectivity, and the adoption of Lufthansa Group's Star Alliance membership, transitioning Ita from SkyTeam [2].
References: [1] [2] [3] [4]
Enrichment Data: The proposed merger between Lufthansa and ITA Airways entails multiple critical components.
- Stake Acquisition
- Lufthansa purchases a 41% stake in ITA Airways, with the Italian government retaining a 59% share, allowing for future shareholding increases [1][4].
- Integration Process
- Changes to loyalty programs and codesharing agreements are forthcoming [1].
- Operational adjustments at German airport hubs are part of the integration plan [1].
- Financial Investment
- Lufthansa has initially invested €325 million in ITA Airways, with a projected total investment of €829 million across various phases [4].
- Leadership Transition
- A new Board of Directors headed by key executives from Lufthansa is overseeing the transition and integration of ITA Airways into the Lufthansa Group [2][4].
- Employee Advocacy
- Lufthansa's new management operates a meeting with labor unions to tackle workforce concerns, focusing on expanding the fleet, developing new routes, and maintaining job security [4].
- Strategic Benefits
- The acquisition enables ITA Airways to leverage its strong presence at Rome Fiumicino Airport and robust North American connections for the Lufthansa Group [2].
- Regulatory Approval
- The European Commission reviews the acquisition for potential competition issues. Eventually, the Commission approves the deal in November 2024 [2].
