Lufthansa Group Acquires 41% Stake in Italy’s ITA Airways

Photo source: Lufthansa Group

Lufthansa Group on Thursday reached an agreement with the Italian Ministry of Economy and Finance (MEF) to acquire a minority stake in the Italian national carrier ITA Airways (Italia Trasporto Aereo S.p.A.).

Lufthansa will obtain a 41 percent stake in ITA for 325 million euros through a capital increase. As part of the agreement, the MEF has also committed to a capital increase of 250 million into ITA.

In addition, the MEF and Lufthansa agreed on options to enable a potential acquisition of the remaining shares by Lufthansa at a later date. The purchase price for the remaining shares will be based on the business development of ITA Airways.

According to Deutsche Lufthansa AG Chief Executive Officer Carsten Spohr, the agreement will lead to a “win-win” situation for Italy, ITA Airways and Lufthansa Group

“And it is good news for Italian consumers and for Europe, because a stronger ITA will invigorate competition in the Italian market,” Spohr said, adding that ITA is a “perfect fit” for Lufthansa Group due to its modern fleet and its efficient and expanding hub in Rome.

Photo source: ITA Airways

The acquisition of the minority stake of ITA Airways by Lufthansa Group is subject to approval by the relevant authorities. Upon closing of this transaction, ITA Airways and Lufthansa Group are expected to immediately start their cooperation at a commercial and operational level.

ITA Airways will become the fifth network carrier in Lufthansa Group’s multi-brand and multi-hub system, which also includes Austrian, Swiss, Brussels Airlines and Eurowings. As part of Lufthansa Group, ITA will remain a standalone airline with its own management and a strong brand identity – in line with Lufthansa Group’s multi-hub, multi-brand and multi-AOC strategy. As a network airline, ITA will closely cooperate with Lufthansa Group to benefit from group synergies, such as access to the partner network, central revenue management and the use of Lufthansa Group’s global sales and marketing channels.

Currently, ITA serves 64 destinations: 21 domestic, 33 international and 10 intercontinental routes.

ITA Airways was founded in November 2020 and has approximately 4,000 employees today. Headquartered in Rome, the airline welcomes more than 10 million passengers per year and is running a modern fleet of 66 Airbus aircraft.