Lufthansa Reveals Plans to Integrate ITA Airways After Acquisition
Following the European Commission’s approval on November 29, 2024, the Lufthansa Group has unveiled its strategic plans for integrating ITA Airways into its global network. The acquisition, which strengthens Lufthansa’s position in international aviation, aims to enhance key routes and reshape ITA’s operations within the Group’s broader network.
According to a report from Corriere Della Serra, the initial focus will be on bolstering the Lufthansa Group’s network by expanding on high-demand international routes, particularly in South America and Africa. ITA Airways will also help enhance the Group’s hub-and-spoke network model and streamline operations by cutting loss-making services to regions that don’t align with the Group’s core activities.
The full integration process is expected to take up to two years. This period will involve extensive renegotiations with suppliers, changes to commercial infrastructures, adjustments to flight schedules, and the optimization of aircraft use. Additionally, Lufthansa will align ITA Airways’ fare structures and loyalty programs with its own, ensuring a seamless experience for customers across the Group.
One of the key goals for ITA Airways is to improve the connectivity strategy for its primary hub at Rome’s Fiumicino Airport (FCO). Lufthansa intends to prioritize the development of routes to South America and Africa, regions traditionally served by European carriers such as British Airways, Iberia, and Air France. ITA Airways will be tasked with expanding the Group’s presence in these high-growth markets, which are expected to play a crucial role in Lufthansa’s global strategy.
For South America, ITA Airways will introduce direct flights from Rome to Bogotá, Colombia, competing with other major carriers like Air France, Iberia, and Avianca. Additionally, the airline plans to increase flight frequencies to Brazilian cities, building on its existing routes to São Paulo and Rio de Janeiro.
Lufthansa also seeks to optimize connections between its US network and Eastern Europe. While the German carrier already operates strong transatlantic connections through Munich and Frankfurt, ITA Airways’ hub in Rome will serve as a key link, particularly in serving smaller airports. Furthermore, ITA will collaborate with regional partner Air Dolomiti to extend its reach into European markets.
In an effort to further expand its regional network, Lufthansa is in talks to form an agreement with SkyAlps, an Italian regional airline, to open new markets across Europe. However, this agreement is contingent on SkyAlps passing its IATA Operational Safety Audit (IOSA) to meet Lufthansa’s safety standards.
Beyond enhancing international networks, ITA Airways will also contribute to Lufthansa Group’s presence in the European leisure travel market, where it has historically been profitable. While Discover Airlines currently serves this segment, ITA is seen as an ideal vehicle to further expand Lufthansa’s reach into this growing market.
The acquisition of ITA Airways is just one part of Lufthansa’s broader growth strategy. The Group is also exploring potential acquisitions, including the purchase of TAP Air Portugal, which is expected to be privatized in 2025, as well as a potential stake in Latvia’s airBaltic if the carrier proceeds with an IPO. This expansion marks a significant step in Lufthansa’s ambition to strengthen its position as a leading global airline group.
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