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
On January 15, ITA Airways, Lufthansa Group, and the MEF announced that the Ministry had finalized the Italian carrier’s board structure by selecting five new directors.
Antonella Ballone, a self-described “entrepreneur in the transport and tourism sector,” Joerg Eberhart, an executive within the Lufthansa Group and former CEO of Air Dolomiti, Lorenzo Maggio, another Lufthansa Group executive, Sandro Pappalardo, a board member at ENIT – Agenzia nazionale del Turismo (The Italian Government Tourist Board), and Efrem Angelo Valeriani, advisor of Aequa Roma SpA, a tax monitor in Rome, Italy, and CEO of Improve, an Italy-based training and
According to ITA Airways, the Board of Statutory Auditors will include Paolo Ciabattoni, Angela Florio, and Federico Testa. Eberhart and Pappalardo will become the airline’s CEO and Chair of the Board, respectively.
However, neither Lufthansa Group nor the MEF disclosed that the former had purchased a 41% stake in ITA Airways following a dispute that reportedly delayed the appointment of the CEO and chairman of the board due to disagreements over their roles and authority under the new management structure.
New phase
Eberhart expressed his gratitude for being chosen as CEO of ITA Airways, stating that after more than two years of hard effort, the airline can now embark on a new chapter in its brief existence.
This would enable the carrier to expand its position and generate strategic synergies inside the Lufthansa Group, hence boosting growth and strengthening ITA Airways’ position as Italy’s largest airline.
Giancarlo Giorgetti, Italy’s Finance Minister, praised Nino Turicchi, the leaving CEO, for his service and labor 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 authorized the merger.
EasyJet was named the sole taker for slots at Milan-Linate by ITA Airways and Lufthansa. The airline also opened a new base and, as a result, additional flights from Leonardo da Vinci Fiumicino Airport (FCO) in Rome. The long-haul remedy takers were the International Airlines Group (IAG) and Air France-KLM.
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 process involves the government selecting individuals based on their expertise and experience in aviation, business, and finance.
What is the role of the Board of Directors at ITA Airways?
The Board of Directors is responsible for overseeing the strategic direction, operations, and management of ITA Airways. They make key decisions regarding the airline’s policies, financial matters, and long-term goals.
How does the Italian Ministry influence ITA Airways through the Board of Directors?
The Italian Ministry, through the Board of Directors, ensures that ITA Airways aligns with national interests and economic objectives. The Ministry’s involvement ensures transparency, accountability, and that the airline follows regulations set by the government.
Is the Board of Directors of ITA Airways made up of government officials?
While the Board of Directors is appointed by the Italian Ministry, it is generally composed of independent experts in the fields of aviation, business, and finance rather than direct government officials. The goal is to ensure that ITA Airways is run efficiently and effectively in the global aviation market.
How frequently does the Italian Ministry update or change the Board of Directors at ITA Airways?
The Italian Ministry may make changes to the Board of Directors as necessary, typically in line with strategic shifts or following major business milestones. Board appointments are usually reviewed every few years to ensure alignment with the airline’s objectives.
