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Lufthansa CEO Highlights Potential for Airline Consolidation in Europe
ROME (Reuters) – The European airline industry may witness further consolidation, according to Carsten Spohr, the CEO of Germany’s Lufthansa. This statement follows the company’s recent acquisition of a 41% stake in Italy’s state-owned ITA.
Spohr expressed his belief in the necessity for consolidation, stating, “We have too many airlines in Europe. I am convinced consolidation will go on.” This sentiment echoes the ongoing challenges faced by airlines on the continent.
Lufthansa’s purchase of the ITA stake, valued at 325 million euros (approximately $332 million), is aimed at enhancing the airline’s foothold in the attractive southern European market. This move is part of a broader strategy to navigate a competitive landscape and address operational demands.
In a bid to expand its influence within Europe, Lufthansa also finalized an agreement last week to acquire a 10% stake in the Latvian airline airBaltic. This strategic step highlights the airline’s pursuit of additional resources to alleviate supply constraints and broaden its operational capacity.
Looking ahead, Spohr indicated that Lufthansa plans to acquire more shares in ITA by 2025, although he clarified that raising its stake to 90% will not happen this year. When the acquisition deal was initially agreed upon with Italy’s government, Lufthansa aimed for eventual full control of ITA, with the remaining 59% to be retained by the Italian Economy Ministry.
During a recent press conference in Rome, Spohr also mentioned that Lufthansa expects to start seeing profits from its investment in ITA starting this year, signaling optimism for future returns.
Joerg Eberhart, the newly appointed CEO of ITA, noted that growth initiatives would commence in 2026, particularly with long-haul routes. He emphasized the airline’s goal to capture a larger portion of traffic at Rome’s Fiumicino airport, the company’s central hub.
Moreover, Eberhart announced plans for expanding the workforce beginning in 2026, a move anticipated as a result of a growing fleet and increased operational scale.
In a significant development for both airlines, ITA is set to become a member of the Star Alliance, the world’s largest airline alliance, starting next year, as revealed by Spohr. This membership will further integrate ITA into an extensive global network of airlines.
Lufthansa’s portfolio also includes Austrian Airlines and Swiss International Air Lines, showcasing its diverse presence in the aviation sector. The airline aims to navigate the challenging European market with strategic acquisitions and partnerships.
Source
finance.yahoo.com