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Ita-Lufthansa, agreement blocked during the night: «Italy is not selling off the airline». The Germans: «We respect the 2023 agreements»

by Leonard Berberi - Stalemate on the agreement for the entry of the Germans into the Italian carrier. Lufthansa would have asked to review the entire investment figure downwards (829 million), the Treasury emissaries said no

The agreement between the Ministry of Economy and the Lufthansa group on Ita Airways risks falling apart after almost two years of tight negotiations which even led to a preliminary green light for the wedding from the European Commission. Shortly before sending the documents for the approval of the wedding to Brussels – on the evening of Monday 4 November – the two parties began to “argue”, in particular over the price. This is what the Corriere learns from two sources familiar with the discussions.

The clutches
Italians and Germans, according to sources, have started discussing some contractual clauses relating to the amount to be paid following the first capital increase reserved for Lufthansa (relating to price adjustment). At that point – it is one of the reconstructions – the German giant would have highlighted that the closing, plausibly at the end of the year, should see an “adjustment” of the figure relating to the second tranche of 325 million (plus 100 million bonus) because Ita compared to six months before it will have lost value.
Rome’s “no”.
A reasoning that the Italian side would have countered by proposing the revision of some parts of the contract. In short, Rome does not accept any adjustment on the second tranche on the basis of the financial results of the last quarter of the year which is also one of the worst in air transport because it is the period in which airlines lose money. «Italy is not selling off its company», filters from government sources.

Endless negotiations
Negotiations went on all night. But between disagreement on the price and accusations of failure to apply some contractual clauses, this seems like a breach capable of ruining the entire agreement built over the months and defended so much in Brussels before the EU Antitrust. The Italian side, however, believes that it is not obliged to close the agreement with Lufthansa if this is against the interests of the country.
The last hours
«The Lufthansa group is respecting the 2023 agreement with the Italian Ministry of Economy and Finance for the acquisition of 41% of Ita Airways», says a note from the German giant. “The company signed the necessary package of corrective measures within the agreed deadline.” In fact, it is filtered through Brussels that in addition to Lufthansa, the package of “remedies” necessary for the wedding was also signed by Ita itself, the rival carriers (easyJet, Air France-KLM and IAG), but only the signature of the MEF is missing.

 

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