The CEO is one of five new executives that the Italian Ministry of Economy and Finance (Ministero dell’Economia e delle Finanze, MEF), which owns ITA Airways, has chosen to the position.
New appointments
ITA Airways, Lufthansa Group, and the MEF declared on January 15 that the Ministry had appointed five new directors and finalised the board structure for the Italian carrier.
Sandro Pappalardo, a board member at ENIT – Agenzia nazionale del Turismo (The Italian Government Tourist Board); Joerg Eberhart, an executive within the Lufthansa Group and former CEO of Air Dolomiti; Antonella Ballone, a self-described “entrepreneur in the transport and tourism sector”; and Efrem Angelo Valeriani.
Advisor of Aequa Roma SpA, a tax monitor in Rome, Italy, and CEO of Improve, an Italy-based training and consultancy provider in the aviation sector, will be among ITA Airways’ five board members.
Federico Testa, Paolo Ciabattoni, and Angela Florio will make up the Board of Statutory Auditors, according to ITA Airways. Eberhart and Pappalardo will take over as CEO and Board Chair, respectively, of the airline.
However, neither the MEF nor Lufthansa Group revealed that the former had purchased a 41 percent share in ITA Airways after a dispute that apparently postponed the appointment of the board chairman and CEO because of disagreements over their roles and responsibilities under the new management structure.
New phase
Eberhart stated that he was honoured to be chosen as ITA Airways’ CEO, adding that the airline can now start a new chapter in its brief history after more than two years of arduous effort.
By doing this, the airline will be able to fortify its position and create strategic alliances within the Lufthansa Group, which will boost expansion and solidify ITA Airways’ dominance in Italy.
Giancarlo Giorgetti, Italy’s Finance Minister, praised Nino Turicchi, the leaving CEO, for his service and labour during the transition process. Giorgetti also wished Eberhart and Pappalardo well and greeted the five board members.
Meanwhile, the Lufthansa Group issued a brief statement announcing that Eberhart and Maggio had been appointed to ITA Airways’ board of directors.
The Frankfurt Stock Exchange (Börse Frankfurt, ETR) said that Lufthansa Group has not yet purchased the 41% interest through a €325 million ($334.2 million) capital increase because “the final formalities still need to be clarified.”
Long process
While it appears that the purchase for the Italian airline’s 41% stake is imminent, completing the merger has been a lengthy procedure for Lufthansa Group, ITA Airways, and, by extension, the MEF.
The Germany-based airline firm, which owns subsidiaries of de facto flag carriers in Austria, Belgium, and Switzerland, including Lufthansa, announced the acquisition in May 2023. At the time, Carsten Spohr, CEO of Lufthansa Group, stated that the partnership will benefit Italy, ITA Airways, and Lufthansa.
“As a young company with a modern fleet, and with its efficient and expanding hub in Rome, ITA is a perfect fit for Lufthansa Group. In Milan, ITA serves a strong catchment area which also offers potential for growth.”
In November 2023, both stakeholders informed the European Commission (EC) of the transaction, and in March 2024, the EC alerted the parties of potential competition concerns that may develop as a result of the transaction.
To obtain EC approval, ITA Airways and the Lufthansa Group were required to relinquish slots at Milan Linate Airport (LIN), make necessary assets available to allow rival carriers to launch flights between Rome or Milan and certain airports in Central Europe, and enter into agreements with competitors, such as interlining or slot swaps, to ensure competition on long-haul flights from Italy. On July 3, 2024, the European Commission authorised the merger.
ITA Airways and Lufthansa have designated easyJet as the remedy taker for Milan-Linate slots, with the airline also launching a new base and, as a result, new flights from Rome Leonardo da Vinci Fiumicino Airport (FCO). Air France-KLM and the International Airlines Group (IAG) were the long-haul remedy takers.
FAQ
Who appoints the Board of Directors of ITA Airways?
The Board of Directors of ITA Airways is appointed by the Italian Ministry of Economy and Finance. This decision aligns with the airline’s ownership and governance structure, as ITA Airways is a state-owned company. The appointments are made with the goal of ensuring that the airline operates efficiently and in accordance with national interests.
What is the role of the Italian Ministry in ITA Airways management?
The Italian Ministry of Economy and Finance plays a significant role in overseeing ITA Airways, particularly in its strategic direction and financial decisions. As a state-owned entity, the airline’s operations must align with government policies, economic goals, and public interests. The Ministry’s involvement helps ensure that the airline contributes to Italy’s broader economic interests.
Does the Italian Ministry have full control over ITA Airways?
While the Italian Ministry of Economy and Finance appoints the Board of Directors, it does not exercise direct control over day-to-day operations. The Board manages the airline’s activities, with a focus on profitability, strategic growth, and maintaining competitive operations. The Ministry’s role is more about governance oversight, ensuring that the airline functions in line with national economic objectives.
How does the appointment process for the Board of Directors work?
The process of appointing the Board of Directors for ITA Airways involves careful consideration by the Italian Ministry of Economy and Finance. The Ministry typically evaluates candidates based on their experience, expertise, and ability to lead the airline in achieving financial success and operational efficiency. This process ensures that the airline has a governance structure capable of responding to both market challenges and public interests.
What is the importance of the Board of Directors in ITA Airways’ future?
The Board of Directors plays a crucial role in shaping the future of ITA Airways by making strategic decisions related to fleet expansion, market positioning, financial management, and customer service. Effective leadership is key to the airline’s growth, especially as it works to compete in the highly competitive aviation market while maintaining a sustainable business model for the Italian government.
