ARC NEWS
​ITA begins integration with Lufthansa Group
February 05, 2025
ITA Airways has started its integration into Lufthansa Group, with the two companies immediately linking their frequent flier programs and planning codeshare flights. Around 100 connections within Europe will be jointly offered between the two companies from 30 March, as part of what Lufthansa Group chief executive Carsten Spohr says will be a transaction of "many winners". Lufthansa completed its purchase of a 41% stake in the firm in January, following a three-year process of securing government backing and regulatory clearance. Speaking at a press conference in Rome on 3 February, ITA chief executive Joerg Eberhart said that he has yet to form a full strategy for his airline having been in the job for just two weeks, but he does envisage it growing next year and in 2027, “especially on the long-haul.” The “core” of his airline focus will be on Rome, he added, tallying with the intention of Lufthansa Group which sees Fiumicino airport becoming the company’s sixth European hub with significant long-haul reach. This year, ITA intends to hold its fleet at around 100 aircraft while it concentrates on consolidating with the wider company, Eberhart continued. It will become a new member of Star Alliance next year and is on track to leave SkyTeam by May. Eberhart also says that Lufthansa Group’s Air Dolomiti, a regional airline based in northern Italy, would “start covering other routes, especially towards Rome” alongside ITA’s integration, noting that it “could play a big role in” the wider Italian market. Although he adds that low-cost competitors are currently "stronger than ITA”, there is "still space" for the full-service airline, he believes. In contrast to Lufthansa and ITA's relatively rapid harmonization within Europe, their services to North America will remain separate until they receive antitrust approval in the USA and Canada to join Lufthansa’s transatlantic joint venture with United Airlines and Air Canada. They plan to file for this at end-March with approval expected after 12-18 months, Eberhart said, noting that ITA's existing routes to North America have already been a “great success.” Speaking alongside him, Spohr said that his “clear target” was the complete ownership of ITA, with the Italian government currently holding the majority stake. “We don’t invest in an airline to breakeven,” he continued. “We invest for a return. That means an 8% margin.” He estimates that it will take around 18 months for the full synergies from the transaction to apply, bringing them to 2027.


FlySafair given a year to rectify ownership issue
February 05, 2025
South African carrier FlySafair is continuing to operate as normal after a regulator gave it 12 months to rectify an earlier breach of local ownership requirements. The carrier says in a 4 February statement that the Air Services Licensing Council ruled in December that it did not meet a legal requirement to have 75% of its shareholder voting rights held by "natural persons who are citizens and residents of South Africa". That ruling followed a complaint by rival carrier Lift Airlines, with the Council ruling in mid-January that FlySafair's structure of South African trusts and companies was not compliant with the Air Services Licensing Act. FlySafair is controlled by Dublin-based ASL Aviation Holdings, which is itself owned by STAR Capital Partnership. The airline says it has been given a year to align with the requirements, but adds that it has been given "specific guidance on what compliance should look like". Nonetheless, chief marketing officer Kirby Gordon says: "We will do everything in our power to ensure compliance in these 12 months." Fleets data shows that the airline has a fleet of 37 Boeing 737s, comprised of 38 737-800s, five -400s and one cargo-configured -400. FlySafair operates around 60% of domestic seat capacity in South Africa this month, schedules data shows, followed by Airlink with around 15%. Lift, meanwhile, operates around 6.3% of seats in the market. FlySafair also operates international flights to Mauritius, Windhoek, Victoria Falls, Harare and Zanzibar.


APAC airlines hit record load factor in 2024
February 04, 2025
Passenger load factor for Asia Pacific carriers hit a record 81.6% across 2024 as demand remained strong but the Association of Asia Pacific Airlines (AAPA) expects that growth will moderate this year. The region's airlines carried a combined 365 million international passengers, up 31% year on year, preliminary figures from the association of show. That helped to push RPKs up 28% as ASKs increased 27%, delivering a 0.9 percentage point lift in load factor, despite challenges for airlines that have faced ongoing supply chain shortages and aircraft delivery delays, AAPA director general Subhas Menon. "The post-pandemic recovery on North East Asia routes, helped by the relaxation of visa policies, together with overall healthy demand across the region, drove growth in both leisure and business travel markets," he adds. On the cargo front, demand grew 15%, which was almost in line with the growth in freight capacity, keeping load factor broadly stable at 61%. "Despite weakness in the global manufacturing sector, Asia Pacific carriers saw significant growth in their air cargo business, driven by a surge in e-commerce sales and the region's role as a manufacturing hub, particularly in China. Persistent disruptions in maritime shipping also encouraged a modal shift in transport, contributing to the 15% growth in international air cargo demand for the year," says Menon. He adds that the outlook for air travel markets in 2025 remains broadly positive, although growth rates are expected to moderate further. "However, airlines continue to face challenges, including rising labour, maintenance, and aircraft leasing costs, as well as operational pressures due to ongoing delays in aircraft deliveries. To navigate these challenges, airlines are focusing on active cost management and seeking the commitment of equipment suppliers to address supply chain problems, while continuing to invest in growth opportunities."


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