Lufthansa ITA deal imminent as shareholders meet again
January 15, 2025
In an acquisition first suggested in 2022, the Lufthansa Group intends to acquire an initial stake in ITA Airways through a €325 million capital raise, with Reuters having previously reported that the deal was expected to close on 13 January. However, Italian publication Corriere Della Sera has suggested that the deal has been postponed until after a second meeting of shareholders, scheduled to be held today.
Citing sources familiar with the Italian Ministry of Economy and Finance and the airlines involved, Corriere Della Serra explained that “on the eve of the closing, Rome asked Frankfurt to discuss governance,” with the “scope of delegations of the president and the CEO” being called into further scrutiny.
It has already been made public that Jörg Eberhart, previous head of Italian Lufthansa subsidiary Air Dolomiti, will become the new CEO of ITA Airways. Central to the story is the balance of power in the so-called ‘co-control’ agreement, which will see the new initial minority shareholders co-pilot ITA during its ongoing operations – with the Italian state to remain a shareholder in the airline until the Lufthansa group gradually takes control.
On Monday, Lufthansa CEO Carsten Spohr told German newspaper FAZ that the proposed deal would increase the national carrier’s profits by hundreds of millions of euros in the coming years, stating: “Without the prospect of a contribution to earnings in the three-digit million range, we would not have taken this step”. He added that although an ultimate 100% takeover remains very much in mind, an increased stake is not on the cards for this year, despite Lufthansa intending to “keep the Italian government on board in the coming months”.
Upon closing, ITA Airways will retain its brand name and identity whilst integrated into Lufthansa Group’s multi-hub, multi-airline, with Rome-Fiumicino to become the Lufthansa Group’s sixth and most geographically southernmost hub. Immediately after closing, the two carrier’s route networks will participate in a code-sharing scheme.
In July 2024, the EU Commission had officially green-lighted the acquisition of joint control of ITA by Lufthansa Italian Ministry of Economy and Finance (MEF), subject to certain stipulations to mitigate potential competition concerns. At the time, the Lufthansa Group stated it had expected the deal to close in the fourth quarter of 2024. In November, the Commission finalised the implementation of easyJet, IAG and AF-KM as suitable ‘remedy takers’, thereby decreeing that the upcoming transaction could be implemented.
