Lufthansa calls on EU to block Etihad-Alitalia tie-up
Feb 3, 2014, 7:10 am
#1
FlyerTalk Evangelist
Original Poster
Join Date: Jan 2005
Location: VCE
Posts: 14,165
Lufthansa calls on EU to block Etihad-Alitalia tie-up
This is quite interesting:
(Reuters) - Germany's largest airline Lufthansa (LHAG.DE) has criticized plans by Etihad Airways to invest in ailing Italian carrier Alitalia CAITLA.UL and called on the European Commission to block the deal, saying it would amount to unfair competition.
http://www.reuters.com/article/2014/...A120SO20140203
(Reuters) - Germany's largest airline Lufthansa (LHAG.DE) has criticized plans by Etihad Airways to invest in ailing Italian carrier Alitalia CAITLA.UL and called on the European Commission to block the deal, saying it would amount to unfair competition.
http://www.reuters.com/article/2014/...A120SO20140203
Feb 3, 2014, 7:17 am
#2
Join Date: Jul 2004
Location: PMI
Programs: BA,LH,CX,EK SPG,IC mainly and a few others
Posts: 1,862
This is quite interesting:
(Reuters) - Germany's largest airline Lufthansa (LHAG.DE) has criticized plans by Etihad Airways to invest in ailing Italian carrier Alitalia CAITLA.UL and called on the European Commission to block the deal, saying it would amount to unfair competition.
http://www.reuters.com/article/2014/...A120SO20140203
(Reuters) - Germany's largest airline Lufthansa (LHAG.DE) has criticized plans by Etihad Airways to invest in ailing Italian carrier Alitalia CAITLA.UL and called on the European Commission to block the deal, saying it would amount to unfair competition.
http://www.reuters.com/article/2014/...A120SO20140203
Feb 3, 2014, 7:21 am
#3
FlyerTalk Evangelist
Original Poster
Join Date: Jan 2005
Location: VCE
Posts: 14,165
Given the very negative perception of many people at the moment about the economy in general in Italy and the fear of job losses it is interesting Lufthansa chose to be so public about this- fueling fire for the anti-euro crowd which is having a very strong political success at the moment in Italy:
"We reject recurrent subsidies and the partial renationalization of European airlines, whether by European states or by states or state-owned companies from outside the European Union," the German airline said on Monday.
Feb 3, 2014, 7:31 am
#5
Join Date: Jun 2009
Location: Geneva, Dubai, Paris
Programs: Disillusioned Cent
Posts: 1,880
I'm not sure I understand EY's strategy of strictly buying stakes in non-premium airlines: Air Berlin, Air Serbia, Darwin and now Alitalia. They need slots and feeder traffic, I get it, but at the risk of damaging their image?
Last edited by JohnRain; Feb 3, 2014 at 7:41 am
Feb 3, 2014, 7:33 am
#6
FlyerTalk Evangelist
Original Poster
Join Date: Jan 2005
Location: VCE
Posts: 14,165
If anyone reads Italian you can see some politicians/ministers getting quite worked up about the Lufthansa comments here:
http://www.ilsole24ore.com/art/notiz...l?uuid=AB2AM6t
Feb 3, 2014, 7:40 am
#7
Moderator: Lufthansa Miles & More, India based airlines, India, External Miles & Points Resources
Join Date: Dec 2002
Location: MUC
Programs: LH SEN
Posts: 48,132
Feb 3, 2014, 7:43 am
#8
FlyerTalk Evangelist
Original Poster
Join Date: Jan 2005
Location: VCE
Posts: 14,165
They are only talking about investing 300 million EUR anyway which will take AZ less than one year to burn through at their current rate. I just cannot understand why Lufthansa would wander into this- political hot potato.
Feb 3, 2014, 7:48 am
#9
Moderator: Lufthansa Miles & More, India based airlines, India, External Miles & Points Resources
Join Date: Dec 2002
Location: MUC
Programs: LH SEN
Posts: 48,132
I suppose the reason LH is so sore is the LH Italia / Air One history which basically went belly up because the Italian government supported AZ and didn't allow competition.
Feb 3, 2014, 8:05 am
#10
FlyerTalk Evangelist
Original Poster
Join Date: Jan 2005
Location: VCE
Posts: 14,165
300 Million: that's just the first tranche (they can pay more due to EU ownership/equity restrictions), I'm sure they plan to inject some cash via Mille Miglia, lend them aircraft etc etc, like they did for Air Berlin
I suppose the reason LH is so sore is the LH Italia / Air One history which basically went belly up because the Italian government supported AZ and didn't allow competition.
I suppose the reason LH is so sore is the LH Italia / Air One history which basically went belly up because the Italian government supported AZ and didn't allow competition.
LH Italia was most hurt by the commencement of the high speed train Milano-Roma which essentially eliminates the need for what was one of the most profitable flight corridors in Europe. Also Easyjet is a fierce competitor in Italy and surprisingly adept at grabbing the business customer.
Feb 3, 2014, 8:43 am
#12
Join Date: Jul 2010
Location: Between AMS and BRU
Posts: 8,852
Nothing strange about that.... it not the participation itself they are objecting to (no objection when KL participated, and lost money). But it's EY as the participant, an entity they view as not competing on a level playing field (what airline is).
Feb 3, 2014, 8:53 am
#13
FlyerTalk Evangelist
Original Poster
Join Date: Jan 2005
Location: VCE
Posts: 14,165
LUFTHANSA ALL’ATTACCO
http://www.corriere.it/economia/14_f...964bc663.shtml
Feb 3, 2014, 9:00 am
#15
FlyerTalk Evangelist
Original Poster
Join Date: Jan 2005
Location: VCE
Posts: 14,165
“We are doing our job by means of painful cost-cutting measures, but we need fair competition,” the airline stated.
http://gulfnews.com/business/aviatio...ines-1.1286040