Italy and Lufthansa Resolve Impasse, ITA Airways Sale on Track
Italy and Lufthansa Group have successfully resolved a last-minute issue that threatened to derail the partial sale of ITA Airways (AZ, Rome Fiumicino). The Ministry of Economy and Finance (MEF) confirmed that a final package of remedies submitted to the European Commission is consistent with the original agreement reached on July 3, 2023.
In a brief statement issued late on November 11, the MEF confirmed that the corrective measures had been sent to the Directorate-General for Competition at the European Commission in Brussels. The ministry emphasized that there had been no changes to the economic conditions previously agreed upon.
“We confidently await the final approval of the European Commission to proceed with the closing of the operation. The economic conditions envisaged have not undergone changes compared to the agreement already signed,” the MEF added.
Lufthansa Group reaffirmed its commitment to the 2023 agreement with the MEF, confirming that it would proceed with acquiring an initial 41% stake in ITA Airways. The group also emphasized that it had met the agreed deadline for submitting the required remedy package to European regulators.
On November 12, a Lufthansa spokesperson told ch-aviation that the German carrier had submitted the remedy package and expressed confidence that the European Commission would approve the package in the coming weeks. The spokesperson further explained to Reuters that “Lufthansa has found a solution to the points under discussion with the MEF in recent days.”
This resolution follows a potential roadblock in the transaction, reportedly caused by a dispute over the payment terms following ITA’s first capital increase. Lufthansa Group had sought to reduce the second tranche payment of EUR603 million (USD650 million), citing a decline in ITA’s value.
The sale can only proceed once the European Commission approves “remedy takers” for certain routes. EasyJet, Air France-KLM, and IAG International Airlines Group are expected to take over airport slots that Lufthansa Group carriers and ITA Airways must relinquish to ensure the preservation of competition in the market.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com