<center>MAT gets more bad news</center>

GLOBAL AVIATION NEWS

Lufthansa eyes ITA stake

The Lufthansa Group is reported to be working on a proposal to purchase up to 40% of new Italian airline ITA. The German group is keen to gain a foothold in the Italian market and wants to develop Rome Fiumicino as a major international hub. ITA’s board has also expressed interest in partnering with Lufthansa. A deal could be reached as early as this summer. ITA Airways might only have started operations on October 15, but it has already been making waves in the European aviation space. From ordering up 28 new technology aircraft from Airbus to signing various codeshares, the airline has been keenly making its presence known. But what it really needs is a major partner for future operations, and front runner to be that partner is German aviation giant Lufthansa. The group is reported to have presented a proposal for a partnership with the Italian airline, which includes a purchase of share capital of between 15% and 40%. The proposal, which remains unofficial for now, is also reported to include the development of Fiumicino as a new hub and other partnership elements. Lufthansa is keenly eyeing ITA’s commitment to a leaner, greener fleet, and believes that it can deal a blow to European competition as the industry prepares for significant recovery. Having repaid its bailout loan in full at the end of last year, the Lufthansa Group is in a strong position to begin making strategic investments for the future. For ITA, a strong international partner is needed to strengthen its network, and Lufthansa is keenly desired by the board. ITA Airways board member Alfredo Altavilla said last month, “It would be wrong to remain independent because we would always be too small compared to the three big airline groups operating in Europe. We are a pretty bachelorette who has many admirers… we hope that Lufthansa will be one of those handsome and rich admirers who might be interested in ITA Airways”.

MAT gets more bad news

Who no longer wants MAT?

The national carrier of Macedonia, which is currently in major problems as it faces being grounded by January 15 due to the fact that it has debt to the Macedonian Civil Aviation Agency, now has received more bad news. The Macedonian government will now allow other carriers to have a “scheduled airline” status in the country. More precisely, MAT is the only Macedonian based carrier that has the status of a scheduled carrier; other airlines are considered as charter carriers only. The government now wants other airlines in Macedonia to have the same status. Except for Star Airlines (the Skopje based cargo airline), no other carrier is based in Macedonia. Those that did exist have all declared bankruptcy. The government’s decision could help start up airlines.

Meanwhile MAT’s CEO says the Civil Aviation Agency’s announcement that they will ground the carrier has hurt the airline greatly. The Macedonian diaspora is turning away from MAT and is choosing other airlines to fly to Skopje and Ohrid. MAT is happy with the way the government is helping the national carrier in overcoming its problems with EUROCONTROL. However many believe that a particular party inside Macedonia’s coalition government wants the airline to disappear.

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