Lufthansa and the Italian government have concluded negotiations over the German airline's acquisition of a significant stake in ITA Airways. The agreement entails Lufthansa purchasing 41% of ITA Airways for 325 million euros, with an option for a full takeover in the future. This decision comes after lengthy discussions, including a recent dispute over financial terms.
ITA Airways, a successor to the financially troubled Alitalia, emerged in 2021 after state intervention. The Italian government struggled for years to find a suitable investor to reduce its stake. The deal with Lufthansa marks a decisive step in ITA's future direction and includes satisfying conditions set by the EU Commission to address competition concerns.
Key among these conditions are the allocation of attractive landing and departure slots at Milan Linate Airport to other airlines. The final deadline for meeting these requirements was respected, according to the Italian Ministry of Economy and Finance. Despite a request from Lufthansa for a 10 million euro discount on the subsequent 49% share, the Italian government maintained its stance on the airline's valuation.
This acquisition is expected to bolster Lufthansa's strategic expansion plans, particularly focusing on enhancing its network in Rome with potential routes into Africa and Latin America. The EU Commission's approval in July had already paved the way for this partnership, contingent upon the stipulated competition-related conditions.
With this deal, Lufthansa aims to strengthen its position in the European aviation market, while ITA Airways stands to benefit from increased investment and potential growth opportunities.
