EU Commission Approves Lufthansa Group's Acquisition of ITA Airways

Lufthansa Group to Acquire 41% Stake in ITA Airways

The European Commission has given its approval for Deutsche Lufthansa AG to acquire a 41 percent stake in ITA Airways, with the transaction set to complete in the fourth quarter of 2024. This deal, subject to specific conditions, marks a significant step in Lufthansa Group’s expansion strategy.

Strategic Integration

Enhanced Connectivity

Lufthansa plans to swiftly integrate ITA Airways into its multi-hub, multi-airline, and multi-brand system, maintaining ITA Airways' brand name. This integration will leverage synergies in worldwide sales, loyalty programs, and aircraft and fuel purchasing, enhancing ITA Airways' economic stability and operational efficiency.

Market Expansion

Italy will become Lufthansa Group’s fifth home market, significantly boosting the Group's presence in Europe. With Rome-Fiumicino set to become Lufthansa Group's sixth hub, the integration will create over 1,000 new transfer options, enhancing connections to South America, North Africa, and the Middle East.

Financial and Operational Details

Investment and Future Acquisition

The acquisition involves a capital contribution of 325 million euros, agreed upon in May 2023. Options for Lufthansa to acquire the remaining shares in ITA Airways from the Italian Ministry of Economy and Finance (MEF) can be exercised from 2025 at the earliest.

Operational Collaboration

Post-transaction, ITA Airways' routes will be linked with Lufthansa’s network through code sharing, providing seamless travel options for customers. ITA Airways aims to join the Star Alliance, with harmonized commercial processes, IT systems, and purchasing processes to follow quickly.

Statements from Leadership

Lufthansa Group CEO, Carsten Spohr

"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."

Harmonizing Efforts

Spohr emphasized the strategic benefits, stating, "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."

Competitive Concessions

EU Commission Conditions

To secure approval, Lufthansa and ITA Airways agreed to a package of concessions, including the transfer of slots at Milan-Linate Airport to a competitor in short-haul traffic. This competitor will also take over certain routes where both airlines currently compete, ensuring improved competition on long-haul routes from Rome to North America.

ITA Airways Background

Modern Fleet and Expansive Network

Founded in November 2020 and operational since October 2021, ITA Airways employs approximately 4,860 staff and operates a fleet of 96 Airbus aircraft. The airline serves 69 destinations and carried nearly 15 million passengers last year. The Rome hub provides an ideal base for expanding connections towards Africa and Latin America.