Lufthansa Closes Minority Stake Acquisition in ITA Airways
In a significant move that marks a new chapter in European aviation, Lufthansa Group is set to acquire a 41% minority stake in Italy’s state-owned ITA Airways, the successor to Alitalia. The acquisition, valued at EUR325 million (approximately USD335 million), is expected to close on January 13, 2025, following months of negotiations and regulatory review.
The announcement came after reports by the German news agency dpa, which cited information shared by Chairman and CEO Carsten Spohr during an internal staff meeting in December. Although Lufthansa Group is not providing further details or commenting on its internal discussions, it confirmed that the transaction is on track and will officially close on January 13, 2025. Earlier statements from the Lufthansa parent company had indicated that the deal was expected to close in early 2025.
The deal represents a strategic investment by Lufthansa Group as it looks to expand its presence and influence within the European airline market. By acquiring a 41% stake in ITA Airways, Lufthansa not only strengthens its foothold in Italy but also seeks to enhance connectivity and operational synergies across its global network. This acquisition aligns with Lufthansa’s broader strategic goals of modernizing its operations, increasing market share, and fostering long-term partnerships to drive growth in a competitive market.
Earlier in July 2024, the European Commission cleared the bid, though subject to compliance with certain remedial measures designed to ensure fair competition within the European Union market. These remedies aim to safeguard balanced competition, particularly on long-haul routes between Italy and North America, where both ITA Airways and its competitors have significant market interests. After several months of discussions and adjustments in response to regulatory concerns, the European Commission finally approved the deal on November 29, 2024. The approval was granted after commitments were made by Lufthansa and the Italian Ministry of Economy and Finance to designate easyJet, IAG (International Airlines Group), and Air France-KLM as suitable “remedy takers” under the commitments required to maintain competitive balance in the market.
The acquisition of ITA Airways, which operates primarily out of Rome-Fiumicino, marks a historic partnership that could reshape the dynamics of the European aviation landscape. ITA Airways has been working to modernize its fleet and restore confidence among travelers following the financial and operational challenges faced by its predecessor, Alitalia. With Lufthansa’s investment, ITA is expected to benefit from enhanced expertise, improved operational practices, and closer integration with one of Europe’s most robust airline groups.
For Lufthansa, the deal not only brings a new revenue stream and a stronger presence in the Italian market but also creates opportunities to optimize route networks and improve competitive positioning on international long-haul routes. The partnership is poised to leverage Lufthansa’s extensive global network and ITA’s deep local knowledge, thereby driving increased connectivity for passengers while enhancing efficiencies across both carriers’ operations.
As the January 13, 2025, closing date approaches, industry analysts are watching closely. The successful completion of this transaction is expected to set a new benchmark for strategic airline investments in Europe. With the combined strengths of Lufthansa Group and ITA Airways, the partnership is likely to influence competitive dynamics on key routes and foster new opportunities for growth in the post-pandemic aviation market.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com