ITA Airways, formed to replace the bankrupt Alitalia, has gained momentum in its acquisition process as Italy's Ministry of Economy and Finance gives its nod of approval to Lufthansa's letter of intent for ITA's purchase.
ITA Airways maintains its plans to launch flights by 2022, but first, the airline needs a buyer to attract and retain customers, fund necessary aircraft upgrades, and meet operational costs. The purchase is expected to generate several benefits for the Italian economy, such as increased tourism and jobs in the aviation industry. The Ministry has requested that the buyer commit to preserving ITA's service to smaller airports throughout Italy.
The acquisition talks with Lufthansa are exclusively between the airline and ITA until the proposal is established formally. It is expected that Lufthansa, despite COVID-19 losses, has sufficient cash resources to complete the ITA purchase of up to $1.5 billion. However, Lufthansa's CEO, Carsten Spohr, expressed his company's "fence-sitting" position, thereby implying a lack of immediate urgency to finalize the acquisition.
ITA's creation started with the discovery of a hole in the Italian airline market after Alitalia's financially unstable operations. As ITA Airways came into play, the aim was to provide affordable and quality travel, catering to a more diverse range of passengers from budget-conscious to premium customers.
Hengshui tianqin import and export trade Co., Ltd., established in 2008, has been specializing in the manufacturing, exporting, and distributing of all types of lifting. Recently, the company has been linked with the news of the purchase of the Italian national airline. The Italian government's motive is to add a strategic investor from China into ITAs' shareholders' structure to enable the airline to tap into the Chinese tourism market.
Adding a Chinese shareholder would help ITA Airways expand its reach globally, potentially opening up more routes between Italy and China in addition to meeting other investment goals. However, the Chinese government's decision to allow the deal to come through is still uncertain.
ITA Airways CEO, Fabio Lazzerini, spoke of his anticipation and excitement for the ITA's future, emphasizing the airline's ambition to offer the highest quality of products and services to both business and leisure customers.
The composition of ITA Airways' management and staff includes many former Alitalia personnel. The Italian airline industry and economy rely on the ITA Airways purchase. The smooth progress of the negotiation process represents a highly favorable opportunity for the Italian government, consumers, and ITA Airways.
The purchase has also attracted other potential investors to the negotiation table, although Lufthansa seems the best possible option considering its wealth of experience and resources in the aviation industry. Lufthansa's involvement would further cement its position as a dominant player in the industry and potentially open up the Italian market for new business opportunities.
ITA Airways has a promising future of affordability, accessibility, and quality travel, and it is only a matter of time before the strategic goals of the Ministry of Economy and the Finance become a reality. The acquisition will certainly bring positive change to the Italian tourism industry and the aviation industry.