Experts say that more flights to Europe will reduce ticket prices as competition tightens
New Delhi: Lufthansa, the German airline, is in the process of buying ITA Airways, which is owned by the Italian government. It is expected that an agreement with ITA will be reached within days. As part of the new initiative, Lufthansa has decided to expand its services to India. It is noticeable on a global scale. Lufthansa’s effort is to compete with the Gulf airlines.
Details of the agreement have not been released by either side. However, it is reported that the German company will purchase 40% of ITA’s shares, valued at approximately 200 million euros. The chairman of the Italian airline has stated that the transaction will be announced soon.
By signing an agreement with ITA, Lufthansa is expected to gain more passengers from India. India has the world’s fastest-growing aviation market. Italy is a popular tourist destination for Indians. ITA already operates nonstop flights between Italy and India. Lufthansa has announced the start of the services.
According to Lufthansa Group CEO Harry Hohmeister, talks with the Italian government are going very well. He stated that the two airlines have reached an agreement on how to collaborate.
Lufthansa’s announcement comes after Tata Air India announced non-stop flights to Europe and the US. IndiGo, the low-cost carrier, is also expanding its global network with codeshare partner Turkish Airlines. Hohmeister said India’s move is being taken seriously.
However, he stated that competition from Middle Eastern carriers is a major concern. The airlines in the Middle East are not ready to reduce the fares for the flights that are still full.
Experts in the aviation industry believe that if airlines continue to compete by lowering ticket prices and improving hospitality, including food, international passengers will benefit.
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