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Airlines

Name: LUFTHANSA ITALIA
7JetSet7 Code: LHI
Status: Currently Not Operational
Region: EUROPE
City: MILAN
Country: ITALY
Employees 2000
Web: lufthansa.com
Email: info@lufthansa.com
Telephone:
Fax:
Sita:
Background
(definitions)

Click below for data links:
LHI-CABIN ATTENDANTS-2009-03-A
LHI-CABIN ATTENDANTS-2009-03-B
LHI-FLIGHT CREW-CABIN ATTENDANTS-2009-02
LHI-INTRO-FEB09
LHI-NEWS-MAR09-A
LHI-NEWS-MAR09-B
LHI-NEWS-MAR09-C
LHI-NEWS-MAR09-D
LHI-NEWS-MAR09-E

Formed in 2008 and started operations in 2009. Subsidiary of Lufthansa (DLH). Domestic, regional, & international, scheduled & charter, passenger & cargo, jet airplane services.

Address:
Milan Malpensa International Airport
Milan, Italy

ITALY (ITALIAN REPUBLIC) WAS ESTABLISHED IN 1861, IT COVERS AN AREA OF 301,268 SQ KM, ITS POPULATION IS 58 MILLION, ITS CAPITAL CITY IS ROME, AND ITS OFFICIAL LANGUAGE IS ITALIAN.

November 2008: Lufthansa (DLH) opted not to wait for a decision on a foreign partner for the restructured Alitalia (ALI) and will be launching its own subsidiary at Milan Malpensa (MXP), called "Lufthansa Italia" (LHI) in February. Six former Germanwings (RFG) A319s will comprise the venture, designed to take advantage of (ALI)'s cutbacks in Lombardy. (DLH) originally had planned to base Air Dolomiti (DLA) EMB-195s at (MXP) but instead has decided to pursue its own Italian Air Operator Certificate (AOC). A (DLH) spokesperson said that securing the (AOC) could take as long as 12 months, but that the company believes it will be in hand by early next year. Air Dolomiti (DLA), based in Verona, will continue to provide regional lift for (DLH).

"(LHI) will position us in an important market characterized by strong demand, which also holds out opportunities for buoyant growth in the future. We will be offering our Italian customers an extensive route network from northern Italy to attractive destinations in Europe," Lufthansa (DLH) Chairman & CEO, Wolfgang Mayrhuber said. "Milan and Lombardy rank among Europe's economically most important and strongest regions. A good route network connecting them with Europe's principal cities is essential." Service will begin February 2 with flights to Paris Charles de Gaulle and Barcelona, with Brussels, Budapest, Bucharest, and Madrid coming on line soon thereafter. London Heathrow (four-times-daily) and Lisbon will be added with the start of the summer schedule at the end of March.

The A319s will be painted in Lufthansa (DLH) livery and include the "Lufthansa Italia" (LHI) brand and will seat 138 passengers across two classes. Italian flight attendants (CA) will staff the cabin. (MXP) operator (SEA) will cooperate on upgrades including an enhanced lounge product and security fast-tracking. Mayrhuber said at the Milan press conference that (LHI) is not connected with the carrier's interest in a minority partnership with Alitalia (ALI) rescuer Compagnia Aerea Italia (CAI), which is expected to choose either (DLH) or Air France (AFA)/(KLM). "They are different things," he said, although he believes (DLH)'s stronger presence in Milan might benefit (CAI) should it choose the German company. "Cooperation with the investor company (CAI) could bring synergies on the cost side and on revenues," he said.

January 2009: 2 A319-112s (654, D-AKNG "Varese;" 1172, D-AKNJ "Milano"), ex-GermanWings (RFG).

February 2009: Starts operations. By April, plans to serve eight major European cities and three destinations within Italy.

March 2009: Lufthansa Italia (LHI) will initially operate under the Lufthansa (DLH) Air Operator's Certificate (AOC), but has made a formal application to Ente Nazionale per l'Aviazione Civile (the Italian civil aviation authority) for its own licence. This is expected by late September or early October, at which time (LHI)'s six A319s will be transferred into the Italian register (the markings I-LHKA through I-LHKF have already been reserved). An Italian (AOC) will enable (LHI) to secure important traffic rights to Eastern European destinations outside of the European Union (EU) and to countries that do not have "open skies" agreements with the (EU). Until the licence is awarded, the airlines flights will be crewed by Italian-speaking (DLH) personnel who will fly in from Munich (MUC), operate a five-day schedule and then return to (MUC).

Affiliate member of the Star Alliance (SAL).

Destinations: Belgium: Brussels; France: Paris Charles de Gaulle (CDG); Hungary: Budapest; Italy: Bari (April 2009), Milan, Naples (April 2009), Rome Leonardo da Vinci (April 2009); Portugal: Lisbon; Romania: Bucharest; Spain: Barcelona, & Madrid; United Kingdom: London Heathrow.

Air France (AFA)/(KLM) announced that it completed the acquisition of a 25% stake in Alitalia (ALI) through a reserved share subscription worth approximately €323 million/$439.1 million. Its partnership with the restructured Italian carrier was announced in January but required approval from competition authorities. At that time, (ALI) said (AFA)/(KLM) would be entitled to nominate three of the 19 members of the board and two members of the executive committee. (AFA)/(KLM) said that the stake grants it "greater access to the Italian market thanks to (ALI) which, following its acquisition of Air One (ADH), has reinforced its position on the domestic market."

2 A319-114s (0651, D-AILI "Roma;" 689, D-AILL), deliveries and A319-112 (0794, D-AKNH "Bologna"), (DLH) leased.

August 2009: Lufthansa Italia (LHI) asked for 10 additional slots at Milan Malpensa (MXP) to enable it to offer more flights to other European destinations as well as more frequencies on domestic services within Italy. (DLH) Chairman & CEO, Wolfgang Mayrhuber has said that (DLH) wants to play a central role at (MXP) in the future. A (DLH) spokesperson said that LH Italia (LHI) currently operates seven A319s including one wet-leased from BMI (BMA).

January 2010: Lufthansa Italia (LHI) will stop Rome Fiumicino - Milan Malpensa flights by February 16th due to poor financial performance. The market is facing stiff competition from high-speed trains. (DLH) is reconsidering its plan to use Milan Malpensa (where it bases 8 A319S) as a mini-hub and maintaining a strong presence in Italy. In summer, it will add two Italian destinations: Olbia and Palermo, plus two international destinations: Stockholm Arlanda and Warsaw, bringing total destinations to 13 points and weekly flights to 176.

After one year of operations, the average load factor is only 65% LF and its Italian operations are not profitable.

July 2010: Lufthansa Italia (LHI) plans to add an unfixed number of airplanes next year to expand its current network. Managing Director, Heike Birlenbach told "The DAILY" that expansion will focus
on Italian domestic routes. (LHI) would like to add services from
Milan Linate Airport to Rome, but the Bersani Decree regulating access to Linate so far keeps it from doing so.

(LHI) transported close to 1 million passengers in its first year of operations. The average load factor was 65% LF and is now well above 70% LF, Birlenbach says. Yields were much lower than foreseen in
the business plan due to last year’s economic crisis. “Our timing could not have been worse,” she says. (LHI) is based at Milan Malpensa Airport and operates a fleet of eight A319s sourced from various Lufthansa (DLH) divisions. It also wet-leases one BMI (BMA) A319 that is used on the Milan - London Heathrow route.

Birlenbach says (LHI) is also looking at adding long-haul services,
but only after a sizable short-haul network has been built up to provide feed. About 20% of (LHI)’s passengers currently connect at Malpensa.

March 2011: Lufthansa Italia (LHI) named Michael Kraus CEO from April 1. Kraus is currently CEO of (DLH) subsidiary Air Dolomiti (DLA), a position he will continue to hold.

May 2011: Lufthansa (DLH) said it will shut down Italian subsidiary Lufthansa Italia (LHI) and change its focus in Italy to bringing passengers to (DLH)'s major European hubs. "Given the slump in prices on European routes and the competition, it was extremely difficult to establish a profitable European network under a separate brand," stated (DLH) Group Chairman & CEO, Christoph Franz. "It therefore makes sense to focus the Lufthansa Group's offering on connecting the Italian market to the group's hubs."

The brand will exist until the end of October. Its eight A319s will then be integrated within the (DLH) Group. (DLH) established the Italian subsidiary in spring 2009 after Alitalia (ALI) significantly shrank, but (LHI) never made a profit.

(LHI) operates to London, Paris and on Italian domestic routes. (DLH) regional subsidiary Air Dolomiti (DLA) will extend its network, especially between Italy and Germany, to compensate for (LHI)'s demise.

(DLH) Executive Board Member, Carsten Spohr commented, "We are the most successful foreign airline in Italy and we want to consolidate our position. By shifting capacities from (LHI) to our core brand Lufthansa (DLH) and strengthening Air Dolomiti (DLA), we will be able to offer our customers an even higher quality network of services via our hubs."

Fleet:
(definitions)

Click below for photos:
LHI-A319-MAR09

October 2011:

6 +1 ORDER A319-112 (646, D-AKNF; 654, D-AKNG "VARESE;" 794, D-AKNH "BOLOGNA;" 1016, D-AKNI; 1172, D-AKNJ "MILANO"), EX-(RFG), (DLH) WET-LSD. 138 PAX, 2 CLASS.

2 A319-114 (641, D-AILH, 2009-09; 651, D-AILI, "Roma" 2009-03; 689, D-AILL, 2009-04), 641 RTND. 138 PAX, 2 CLASS.

Management:
(definitions)

CHRISTOPH FRANZ, CHAIRMAN & (CEO), (DLH) GROUP.

MICHAEL KRAUS, CHIEF EXECUTIVE OFFICER (CEO) (LHI) & AIR DOLOMITI (DLA).

MS HEIKE BIRLENBACH, (CEO), FORMER (DLH) HEAD, MILAN DIVISION, RESIGNED (2011-03).

 
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