Lufthansa on Thursday (25 May) confirmed it had secured a €325 million (41%) stake in ITA Airways, with an option for a complete buyout at a later date.
State-owned ITA was formed following the collapse of Alitalia in 2020, and has previously attracted interest from a joint Lufthansa-MSC Group bid.
Lufthansa will fund the purchase through a capital increase, with Italy’s Ministry of Economy and Finance pledging to invest a further €250 million in ITA through a capital increase of its own.
Should Lufthansa pursue a full acquisition of ITA, the price for the remaining shares "will be based on the business development of ITA Airways".
Subject to approval by the relevant authorities, Lufthansa will begin integrating ITA on a commercial and operational basis with immediate effect "to benefit from group synergies".
It will sit in Lufthansa Group’s portfolio, which includes Lufthansa’s mainline operation, Austrian Airlines, Brussels Airlines, Eurowings and Swiss.
Lufthansa said Italy was "the most important market" outside its home market in Germany and the United States, with strong mutual demand both for business and leisure links between the two countries.
Rome-headquartered ITA was founded in November 2020 and has around 4,000 employees. It operates a fleet of 66 Airbus aircraft, flying to 64 destinations and serving more than 10 million passengers annually.
Lufthansa said ITA’s Rome hub was an ideal platform to diversify its network "towards Africa and Latin America" and improving connectivity with the southern hemisphere. It also remarked on ITA’s strong presence in Milan.
The group has also pledged to work with Italy’s state railroad company to encourage feed via domestic and international rail services, mirroring arrangements it has in Germany, Austria and Switzerland.
Carsten Spohr, Lufthansa Group chief executive, said the agreement was a "win-win" situation for Italy, ITA and Lufthansa, as well as Italian travellers. "A stronger ITA will invigorate competition in the Italian market," he said.
"As a young company with a modern fleet, and with its efficient and expanding hub in Rome, ITA is a perfect fit for Lufthansa Group."
