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Lufthansa outlines expansion plans for ITA Airways across key global markets

Policy
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Airbus A380 | Airbus

Sources have disclosed Lufthansa's initial plans for ITA Airways to the Italian newspaper Corriere della Sera. This follows the European Commission's final approval after both companies addressed competition concerns. The strategy for ITA Airways involves strengthening its network in key markets, enhancing the hub-and-spoke model, and reducing unprofitable services in less significant regions.

Africa and South America are identified as crucial areas for expansion within the Lufthansa Group. The airline aims to increase its presence in these markets, where other European carriers like Air France, British Airways, Iberia, and TAP Air Portugal are prominent. Proposed new routes include a service to Bogotá, Colombia, with Rome Fiumicino (FCO) airport as a potential starting point. Additionally, ITA Airways plans to boost summer flights to Brazilian cities beyond its current destinations of Rio de Janeiro and Sao Paulo.

Lufthansa intends to enhance ITA Airways' connections strategy by increasing transit passenger numbers through Rome Fiumicino. This includes leveraging Air Dolomiti, an existing Italian regional subsidiary. An agreement with SkyAlps is also on the table, pending SkyAlps' completion of the IATA Operational Safety Audit (IOSA) to meet Lufthansa standards.

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Furthermore, Lufthansa seeks to focus ITA Airways more on Eastern Europe to facilitate connections to the United States. This aligns with the group's strategy targeting the transatlantic market. By expanding its Eastern European network, ITA could tap into previously underserved demand.

The full integration of ITA into the Lufthansa Group is expected to take at least two years. Meanwhile, ITA should aim to capture part of Europe's lucrative leisure market without affecting Discover Airlines' operations.

ITA Airways' sale is part of ongoing consolidation in the European aviation sector. Lufthansa reportedly has interests in other airlines such as TAP Air Portugal and airBaltic. The focus on South America for ITA mirrors TAP Air Portugal’s strategy due to its extensive network on that continent.

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