The Italian Ministry of Economy and Finance (MEF), which owns ITA Airways, has selected five new executives, including the CEO.
New appointments.
On January 15, ITA Airways, Lufthansa Group, and the MEF announced that the Ministry completed the Italian carrier’s board structure and appointed 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.
Lufthansa Group has not yet purchased the 41% interest through a €325 million ($334.2 million) capital increase, according to the Frankfurt Stock Exchange (Börse Frankfurt, ETR), as “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.
In May 2023, the Germany-based airline firm announced the acquisition of subsidiaries from de facto flag carriers in Austria, Belgium, and Switzerland, including Lufthansa.At the time, Carsten Spohr, CEO of Lufthansa Group, stated that the partnership will benefit Italy, ITA Airways, and Lufthansa.
“ITA, a youthful firm with a modern fleet and an efficient and expanding hub in Rome, is an ideal fit for Lufthansa Group. In Milan, ITA serves a large catchment area with prospects for expansion.”
In November 2023, both stakeholders informed the European Commission (EC) of the transaction. In March 2024, the EC alerted the parties of potential competition concerns.
To obtain EC approval, ITA Airways and the Lufthansa Group had to relinquish slots at Milan Linate Airport (LIN), make assets available for rival carriers to launch flights between Rome or Milan and certain Central European airports, 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 has taken over slots at Milan-Linate from ITA Airways and Lufthansa. The carrier has also established a new base and launched new flights from Rome Leonardo da Vinci Fiumicino Airport.Air France-KLM and International Airlines Group (IAG) were the long-haul remedy takers.