Italy initiated talks with Deutsche Lufthansa AG to sell a minority stake of ITA Airways, the successor of Alitalia SpA, in a move that may kick off aviation industry consolidation in Europe.
Italy’s finance ministry on Friday signed a letter of intent with the German carrier, the government led by Prime Minister Giorgia Meloni said in a statement. The administration won’t provide additional details on the talks, it said.
Earlier this month Lufthansa submitted a bid, with a view to buying the remaining shares “at a later date.” Further talks will primarily focus on the form of a possible equity investment, and the commercial and operational integration of ITA into Lufthansa, the airline said at that time.
A deal would allow Lufthansa to expand in one of Europe’s key markets, while charting a course for Rome to rid itself of an asset that has soaked up billions of euros in state support. While ITA and the erstwhile Alitalia have been notoriously unprofitable, Lufthansa would gain access to lucrative trans-Atlantic travel while preventing a rival from building up a base in northern Italy that might soak up passengers from Lufthansa’s own Munich hub.
Hong Kong International Airport handled 2.1 million passengers last month, about 24 times that of February last year, airport authorities said in statement.View Article
Deutsche Lufthansa AG said it cancelled some flights on Sunday due to technical issues, just hours before a major strike threatened to force most of Germany’s air and rail services…View Article
American Airlines Group Inc. will temporarily suspend a route between the US and Spain because of ongoing delays in the delivery of Boeing Co. 787 Dreamliners.View Article
French authorities have asked airlines to continue cutting flights through next Wednesday amid strikes over a retirement reform law.View Article
Industry updates and weekly newsletter direct to your inbox!