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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”.

Bad start

Landing at uncertain times

During the first month of 2009, Jat transported 65.001 passenger, 142 tonnes of cargo and 50 tonnes of mail. As airlines become victims of the global financial crisis Jat is no different. Compared to last year Jat’s passenger numbers fell by a hefty 18% while the number of transported cargo also decreased by 22% compared to January 2008. The disappointing January results end Jat’s run of increased passenger numbers over the past 2 years and is an indicator that this year will not be Jat’s at all in terms of passenger transportation. Cabin occupancy also fell by 3 points compared to last year and now stands at 54%. Jat’s management has defended the results saying that this January there were fewer flights than last year which to some extent justifies the fall in passenger numbers. The airline also reported that passenger numbers decreased from its key market – Montenegro. There were 15% fewer flights than in January 2008 however on time performance increased to 64%. Jat’s management blames some late departures due to bad weather conditions and says if these are eliminated the on time performance would stand at 74% (these are flights delayed 15 minutes or more).

Jat’s management however sees a brighter future saying that summer operations will see a significant increase with many new lines beginning operation. The month that could significantly suffer this year compared to last is May while June is expected to see a large increase in passenger numbers.

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