Lufthansa finalises €325m acquisition of 41% stake in ITA Airways
January 16, 2025
The German-based Lufthansa Airlines Group has officially acquired a minority (41%) stake in ITA Airways, the Italian airline that evolved from the collapse of former state-owned carrier, Alitalia.
Originally announced in May 2023 and following two previous attempts by Lufthansa to secure a stake in the Italian carrier in 2009 and 2018, the deal was finally completed on Wednesday 15 January after receiving approval from the European Commission.
As part of the deal and to satisfy regulatory requirements, Lufthansa and the Italian Ministry of Economy and Finance (MEF), which has the majority stake in the airline, have already made a series of concessions to release slots at Italian airports to other airlines.
New leadership structure
The transaction has also reshaped ITA Airways’ leadership structure with two of Lufthansa’s senior management team joining its five-member Board of Directors. Lufthansa Group Airlines’ head of strategy and organizational development Joerg Eberhart, was appointed chief executive of ITA and appointed to the board on Wednesday. In a statement he said: “After more than two years of hard work, this new phase in the company’s history will allow us to strengthen our position and develop strategic synergies that will enhance the growth and solidity of ITA Airways as a leading Italian carrier.”
Eberhart is joined on the board by Lorenza Maggio, Lufthansa’s vice president sales EMEA. Meanwhile, Sandro Pappalrado, an Italian air force pilot and a board director for Italy’s state tourism agency Enit, was named chairman of ITA Airways’ board.
Although the deal was originally expected to close earlier in January, final negotiations were subject to delays due to disagreements over the roles and responsibilities of ITA Airways’ new CEO, appointed by the group and its president, designated by the MEF.
Lufthansa eyes 100% stake
While the MEF retains the remaining 59% of ITA for now, Lufthansa’s 41% minority stake is set to gradually increase to 100% at a yet to be confirmed date, for a total investment of €829 million. Lufthansa’s chief executive, Carsten Spohr described the acquisition as “the biggest in Lufthansa’s history”. He also said the acquisition will increase the German flagship carrier’s profits by hundreds of millions of euros in the coming years, according to FAZ newspaper. “Without the prospect of a contribution to earnings in the three-digit million range, we would not have taken this step,” he said.
The MEF has previously emphasised that the divestiture of ITA Airways to the Lufthansa Group marks the end of a 40-year period of taxpayer losses associated with the airline.
With the addition of ITA Airways, Lufthansa has further strengthened its foothold in the European market and solidifies its position in the global industry. The German airline group’s portfolio already includes another Italian carrier, Air Dolomiti, as well as Brussels Airlines, Austrian Airlines, Eurowings and Swiss. In a
