Jörg Eberhart knows Italy well. For eight years he was head of the Lufthansa subsidiary Air Dolomiti, which mainly connects smaller airports such as Verona and Bologna to the Lufthansa hubs in Frankfurt and Munich. Italy did not let go of the 53-year-old even when he moved back to the group headquarters in Frankfurt as head of strategy in 2021. His biggest project was the negotiations to join the new Italian airline ITA Airways.
If Lufthansa has all the approvals under competition law to take over 41 percent of ITA, Eberhart will have to move again. According to information from industry circles, he is to become head of the new Lufthansa subsidiary. This week, the airline’s board of directors created the formal requirements. The body was reduced from five to three members, but only temporarily. In the end, it should again consist of five people, one of whom will be the new CEO appointed by Lufthansa.
For Fabio Lazzerini, this means the premature but completely expected end after only a short term in office. Lazzerini, the former Italy boss of Lufthansa nemesis Emirates, took over the post last year in hopes of being able to keep it for a while longer. Theoretically, it was conceivable that Lufthansa would stick with him, that Eberhart would stay in Frankfurt longer and perhaps oversee the work as a member of the board of directors. But Lazzerini was not necessarily considered a friend of the Lufthansa takeover, and in Frankfurt one thinks that one has noticed this at one point or another. So he was now dismissed in Rome with friendly words. Alliance and network boss Andrea Benassi takes over the post on an interim basis.
Lufthansa has the option of later taking over ITA entirely
It is not yet clear when Eberhart can really move. Because before the group’s entry into ITA is sealed, the European Commission, as the competition authority, must first wave it through. The preliminary talks have been going on for months because the commission has questions. As soon as Lufthansa officially registers the transaction, it has 35 working days to wave it through in what is known as phase 1. If everything goes smoothly and Lufthansa officially submits the documents at some point in the next few weeks, the deal could go through in October. However, should the Commission come to the conclusion that it has to examine the effects on competition in more detail, the procedure would drag on at least until spring 2024.
Lufthansa reached an agreement with the Italian government on the details of the deal in May. It will initially pay 325 million euros as part of a capital increase and will receive a 41 percent stake in return. The Italian state is contributing another 250 million euros. Lufthansa has the option to fully take over ITA later and plans to do so once the airline is in the black. It could also be rebranded back to Alitalia at that point. ITA owns the rights to the brand of the former state line, which had to cease operations as a result of the corona pandemic.
ITA is to be continued within the group, similar to Swiss, Austrian and Brussels Airlines, with its own brand and management. Lufthansa wants to develop Rome into a hub and let ITA expand again, especially on long-haul routes. Low-cost airlines, especially Ryanair, EasyJet and Vueling, have long dominated domestic and European direct traffic.