Meloni running out of time to save Alitalia’s cash-strapped successor
Prime Minister Giorgia Meloni is running out of time to salvage ITA Airways, the successor to serial loss-maker Alitalia. If her bid to cut a deal and free Rome from a longtime financial burden fails, there’s no plan B in sight. European Union antitrust chief Margrethe Vestager is pressing hard for tough concessions on the planned E325m investment in the Italian flagship by Germany’s Deutsche Lufthansa, citing concerns on higher prices and reduced options for passengers. Lufthansa has in turn peppered Brussels with a few proposed remedies in a bid to break the deadlock. It has suggested sharing routes with rivals out of hubs in Rome and Milan, giving up slots on some European routes, or freezing minimum capacity on flights to the US, Canada and Japan. But so far, that hasn’t been enough to placate European regulators, and the Italian media has speculated darkly that the impasse could mean the deal, which carries an approval deadline of July 4, will fall through. On Wednesday, the Italian government said it submitted its replies to the EU, and that it’s not seeking an extension on the deadline. Asked Wednesday about the status of the review, Vestager said that merger cases are “complex” and certain reviews can “take effort to solve.” She added that the European Commission remains in discussions both with Lufthansa and ITA Airways regarding the future outcome of the deal. Its collapse would be a big problem for Meloni. Her right-wing government, which swept to power in 2022 on a pro-business platform, was counting on not having to continue paying to keep ITA flying. “The intercontinental air market from Italy is extremely competitive. If ITA does not end up within the Lufthansa group, Italian taxpayers are at risk of spending much more on the company,” said Andrea Giuricin, a consultant specializing in the aviation industry who’s affiliated with the Milano Bicocca University. Italy is facing rising deficits, debt loads and anemic economic growth, while Meloni has been eager to concentrate the meager resources at her disposal on keeping key electoral promises like cutting taxes.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2024-05-30/unaligned/meloni-running-out-of-time-to-save-alitalia2019s-cash-strapped-successor
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Meloni running out of time to save Alitalia’s cash-strapped successor
Prime Minister Giorgia Meloni is running out of time to salvage ITA Airways, the successor to serial loss-maker Alitalia. If her bid to cut a deal and free Rome from a longtime financial burden fails, there’s no plan B in sight. European Union antitrust chief Margrethe Vestager is pressing hard for tough concessions on the planned E325m investment in the Italian flagship by Germany’s Deutsche Lufthansa, citing concerns on higher prices and reduced options for passengers. Lufthansa has in turn peppered Brussels with a few proposed remedies in a bid to break the deadlock. It has suggested sharing routes with rivals out of hubs in Rome and Milan, giving up slots on some European routes, or freezing minimum capacity on flights to the US, Canada and Japan. But so far, that hasn’t been enough to placate European regulators, and the Italian media has speculated darkly that the impasse could mean the deal, which carries an approval deadline of July 4, will fall through. On Wednesday, the Italian government said it submitted its replies to the EU, and that it’s not seeking an extension on the deadline. Asked Wednesday about the status of the review, Vestager said that merger cases are “complex” and certain reviews can “take effort to solve.” She added that the European Commission remains in discussions both with Lufthansa and ITA Airways regarding the future outcome of the deal. Its collapse would be a big problem for Meloni. Her right-wing government, which swept to power in 2022 on a pro-business platform, was counting on not having to continue paying to keep ITA flying. “The intercontinental air market from Italy is extremely competitive. If ITA does not end up within the Lufthansa group, Italian taxpayers are at risk of spending much more on the company,” said Andrea Giuricin, a consultant specializing in the aviation industry who’s affiliated with the Milano Bicocca University. Italy is facing rising deficits, debt loads and anemic economic growth, while Meloni has been eager to concentrate the meager resources at her disposal on keeping key electoral promises like cutting taxes.<br/>
