German Cabin Crew Union Reacts To Lufthansa's New ITA Stake
There's rising suspicion that the risks far outweighs the benefits in this agreement.
After several months and rounds of bidding and negotiations, the Lufthansa Group's acquisition of ITA Airways was finally confirmed yesterday after the airline group agreed with the Italian Government for a 41% stake in the Italian flag carrier. The agreement also allows the Lufthansa Group to purchase the rest of the ITA Airways later.
Relief in Italy
In Italy, the news of the deal was primarily well-received as after being used to the failure of Alitalia and the uncertainty of the rebranded ITA Airways, hopes began to soar again that the Lufthansa Group will be able to save the struggling flag carrier. According to Italian Transport Minister Matteo Salvini, the aviation giants from Frankfurt were more than welcome as they were the saviors that ITA Airways and its employees desperately needed.
The Italian worker unions were also relieved about the upcoming entry of ITA Airways into the Lufthansa Group, as it would mean the expansion of fleets and route networks would create new job opportunities. For the former Alitalia employees who have been in the wage compensation fund since 2021, the hope and possibility of new jobs, stable monthly wages, and benefits are music to their ears.
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Suspicions in Germany
While relief is felt in Italy, the same could not be said concerning how Germany was handling the news. In particular, the German unions were divided on how they thought about the Italian flag carrier's entry into the Lufthansa Group - currently consisting of the primary carrier Lufthansa, SWISS, Austrian Airlines, Brussels Airlines, and Eurowings.
From the German unions' perspective, it's undeniable how the deal brings about job opportunities and the potential development of new markets, but the risks seem to outweigh these benefits. In a joint announcement to highlight their skepticism, the cabin crew union Ufo and the German Airline Pilots' Association Vereinigung Cockpit said:
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Bottom line
Albeit it can be taken for granted that such issues have already been foreseen and will eventually be ironed out by the relevant airline management, the Ufo and Vereinigung Cockpit continue to remain weary of how the entry of ITA into the Lufthansa Group will play out for all parties and employees involved.
In the meantime, the unions emphasize that they will pay close attention to the agreement and its details - particularly on any potential competition control from the European Commission, and will make every effort to coordinate closely with the other unions.
German Cabin Crew Union Reacts To Lufthansa's New ITA Stake (simpleflying.com)
There's rising suspicion that the risks far outweighs the benefits in this agreement.
After several months and rounds of bidding and negotiations, the Lufthansa Group's acquisition of ITA Airways was finally confirmed yesterday after the airline group agreed with the Italian Government for a 41% stake in the Italian flag carrier. The agreement also allows the Lufthansa Group to purchase the rest of the ITA Airways later.
Relief in Italy
In Italy, the news of the deal was primarily well-received as after being used to the failure of Alitalia and the uncertainty of the rebranded ITA Airways, hopes began to soar again that the Lufthansa Group will be able to save the struggling flag carrier. According to Italian Transport Minister Matteo Salvini, the aviation giants from Frankfurt were more than welcome as they were the saviors that ITA Airways and its employees desperately needed.
The Italian worker unions were also relieved about the upcoming entry of ITA Airways into the Lufthansa Group, as it would mean the expansion of fleets and route networks would create new job opportunities. For the former Alitalia employees who have been in the wage compensation fund since 2021, the hope and possibility of new jobs, stable monthly wages, and benefits are music to their ears.
Get the latest aviation news straight to your inbox: Sign up for our newsletters today!
Suspicions in Germany
While relief is felt in Italy, the same could not be said concerning how Germany was handling the news. In particular, the German unions were divided on how they thought about the Italian flag carrier's entry into the Lufthansa Group - currently consisting of the primary carrier Lufthansa, SWISS, Austrian Airlines, Brussels Airlines, and Eurowings.
From the German unions' perspective, it's undeniable how the deal brings about job opportunities and the potential development of new markets, but the risks seem to outweigh these benefits. In a joint announcement to highlight their skepticism, the cabin crew union Ufo and the German Airline Pilots' Association Vereinigung Cockpit said:
One primitive problem identified by the unions is that ITA is up against some serious competition with the already well-established airlines and hubs of the Lufthansa Group, increasing the risk of seizing passengers from each other. Preventing such risks will require a more robust central control system to make essential decisions, such as whether passengers from Milan will fly to the US via Munich or via Rome."Opportunities do lie in the growth of the Lufthansa Group, but there are also risks in ITA Airways' lack of profitability and the increasing complexity of the entire group, which takes on increasingly threatening proportions for economic stability. For us, the employee groups in the various airlines of the group mustn't be played off against each other. There should not and will not be competition to the bottom."
Get all the latest aviation news right here on Simple Flying!
Bottom line
Albeit it can be taken for granted that such issues have already been foreseen and will eventually be ironed out by the relevant airline management, the Ufo and Vereinigung Cockpit continue to remain weary of how the entry of ITA into the Lufthansa Group will play out for all parties and employees involved.
In the meantime, the unions emphasize that they will pay close attention to the agreement and its details - particularly on any potential competition control from the European Commission, and will make every effort to coordinate closely with the other unions.
German Cabin Crew Union Reacts To Lufthansa's New ITA Stake (simpleflying.com)