Lufthansa plans long-haul growth for ITA

Lufthansa expects ITA Airways’ long-haul fleet to reach 24 aircraft by 2027 under a plan to develop the Italian carrier’s business from Rome Fiumicino. The German carrier on 26 May agreed a deal to acquire a 41% stake in the Italian flag carrier with options to purchase the remainder from the Italian finance ministry at a later date. During a subsequent presentation to analysts, the German airline group outlined the business plan to increase ITA’s fleet from 66 in May to 94 over the coming five years. ”We will rebalance ITA’s short- and long-haul business,” said Lufthansa Group CE Carsten Spohr during the call. ”We’ll optimise, and in parts right-size, its short-haul feeder network so that it supports growing a larger profitable long-haul business out of Rome Fiumicino, where we intend to grow our share.” While highlighting the strength of corporate and premium leisure demand for ITA’s Milan Linate operation, and the “good potential” to expand the tourist activity there at weekends, Spohr says the focus is on growing a profitable long-haul business from Rome. ”Most of the long-haul business will be to core North and South American destinations. The upcoming integration of ITA into [Lufthansa’s] Atlantic++ joint venture with United and Air Canada… will offer greater connectivity and much wider commercial reach. We will also build on ITA’s established strength on routes to Asia, Africa and the Middle East,” he says. In part, Lufthansa is aiming to reclaim ground lost during the struggles of ITA’s predecessor Alitalia. ”The market share of the Lufthansa Group long-range [in Italy] is almost the same as ITA, so combined you are reaching the share a national carrier normally has,” says Spohr. ”We see potential in long-haul to bring it up to 24 aircraft in our business plan over time and that will rebalance again the market share of a carrier that has not had natural share of a national carrier for some time.” <br/>