Lufthansa is set to buy 40% stake in Alitalia's successor ITA

[ExGingi]

https://www.reuters.com/business/aerospace-defense/germanys-lufthansa-is-set-buy-40-stake-alitalias-successor-ita-paper-2022-01-22/

Moving from Skyteam to Star Alliance?

[AsherO]

https://www.reuters.com/business/aerospace-defense/germanys-lufthansa-is-set-buy-40-stake-alitalias-successor-ita-paper-2022-01-22/

Moving from Skyteam to Star Alliance?

Interesting. Surprising Lufthansa would pour money into this sinkhole. Maybe in exchange for such a big steak they get concessions that make this more viable?

[yelped]

Interesting. Surprising Lufthansa would pour money into this sinkhole. Maybe in exchange for such a big steak they get concessions that make this more viable?

For Lufthansa the Italian market is very important and complements their business hubs.

[ExGingi]

Interesting. Surprising Lufthansa would pour money into this sinkhole. Maybe in exchange for such a big steak they get concessions that make this more viable?

Is it still a sinkhole? Isn't it a new airline that took over what's left from bankrupt Alitalia without the liabilities Alitalia had?

[AsherO]

Is it still a sinkhole? Isn't it a new airline that took over what's left from bankrupt Alitalia without the liabilities Alitalia had?

Alitalia kept getting bailouts from the Italian government, and it kept going to h*ll and needing more money. FWIU it had to do with things like labor unions/laws in Italy that simply made the business unsustainable (at least at this scale), if those things don’t change then ownership only dictates who’s losing the money.

[ExGingi]

Alitalia kept getting bailouts from the Italian government, and it kept going to h*ll and needing more money. FWIU it had to do with things like labor unions/laws in Italy that simply made the business unsustainable (at least at this scale), if those things don’t change then ownership only dictates who’s losing the money.

Bankruptcy usually wipes out all prior contracts and obligations. Are you saying that it's impossible to run a profitable business in Italy?

[AsherO]

Bankruptcy usually wipes out all prior contracts and obligations. Are you saying that it's impossible to run a profitable business in Italy?

I’m talking specifically about airlines, and I’m not saying it’s impossible but I’m wondering if there are local issues there that make it a poor investment candidate.

[ExGingi]

I’m talking specifically about airlines, and I’m not saying it’s impossible but I’m wondering if there are local issues there that make it a poor investment candidate.

Let's just say that Lufthansa is experienced in taking over bankrupt airlines (that might have been considered national carriers?). LX and SN are the first two that come to mind.

[moko]

Curious what this means for ITA Skyteam status....

[AsherO]

Let's just say that Lufthansa is experienced in taking over bankrupt airlines (that might have been considered national carriers?). LX and SN are the first two that come to mind.

Agreed. I’m not sure it’ll work in Italy, in this case I’d love to be wrong.

[Dan]

Curious what this means for ITA Skyteam status....

They would move to *A/LH Group.

[Dan]

Are you saying that it's impossible to run a profitable business in Italy?

Esrogim?