I think it is more about the future jobs within LH Passage... Germanwings, LH Cargo....
Just look what happened to Condor, Aero Logic & Jade (against LH Cargo)
And LH Cityline wants to belong to LH seniorty as well, so the expansion is outscorced...
If LH Pilots want to fly in Italy, why not?
And it can still belong to the KTV.