Lufthansa Group acquisition of ITA Airways approved by EU
Deutsche Lufthansa AG has welcomed the EU’s decision to green light its €325 million acquisition of Italian airline ITA Airways.
The approval means the way is now clear for the acquisition of a minority stake of 41 percent in ITA Airways (Italia Trasporto Aereo S.p.A.) and the subsequent acquisition of the remaining shares by Deutsche Lufthansa AG for a capital contribution of 325 million euros, agreed in May 2023.
The investment will be completed through a capital increase while the transaction is expected to close in the fourth quarter of 2024.
Options for the acquisition of the remaining shares in ITA Airways have been agreed between Lufthansa Group and the Italian Ministry of Economy and Finance (MEF) and can be exercised from 2025 at the earliest.
Deutsche Lufthansa AG CEO Carsten Spohr said: “The approval from Brussels is excellent news for ITA Airways and Lufthansa and especially for all passengers flying to and from Italy.
“We look forward to welcoming ITA Airways and its outstanding employees as a new member of our airline family very soon.
“The decision is also a clear signal for strong air traffic in Europe, which can successfully assert itself in global competition.”
Following the closing, ITA Airways is to become the fifth network airline to be closely integrated with Lufthansa Group while keeping its brand name ITA Airways.
It is hoped that by being part of the Lufthansa Group, the Italian airline will benefit from a number of synergies including aircraft and fuel purchasing.
The move also means Italy has become the group’s fifth home market and is expected to be beaten only by Germany and the US in terms of revenue.
Lufthansa Group and ITA Airways are jointly planning a swift integration ITA Airways while Rome-Fiumicino will become the Lufthansa Group’s sixth and geographically southernmost hub.
Route networks will also be linked together via code sharing, creating more than over 1,000 new transfer options, creating many more options to destinations in South America, North Africa and the Middle East.
Spohr said: “The acquisition of ITA Airways strengthens the internationalisation of the Lufthansa Group.
“We offer our guests a significantly greater choice of connections and destinations, and with the five-star hub in Rome we are also extending our premium offering and better connecting strategic future markets south of the equator to our network.
“Despite the comprehensive and far-reaching concessions, the investment in ITA Airways strengthens the Lufthansa Group’s position in global competition.
“We will make ITA Airways a strong and successful part of our company and thus secure its future as an international airline and strong brand. ITA Airways will support us in further expanding our position as Number One in Europe.”
