Lufthansa has agreed with the Italian Government to purchase a 41% stake in ITA Airways through a capital increase of €325 million. The Lufthansa Group also maintains the option to purchase the rest of the airline outright later.
As a part of the deal, the Italian Ministry of Economy and Finance will also commit to a capital increase of €250 million.
In the initial round of bidding Lufthansa partnered with the MSC Group to compete against Air France-KLM and Indigo Partners. In the end, Indigo failed to bid for the airline, and Italy chose Air France-KLM as the preferred option. However, when these talks failed, Lufthansa jumped back in to the fray.
Commenting on the acquisition, Lufthansa Group CEO, Carsten Spohr, said: “Today’s agreement will lead to a win-win situation for Italy, ITA Airways and Lufthansa Group. And it is good news for Italian consumers and for Europe, because a stronger ITA will invigorate competition in the Italian market. 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.”
"As part of the Lufthansa Group family, ITA can develop into a sustainable and profitable airline, connecting Italy with Europe and the world. At the same time, this investment will enable us to continue our growth in one of our most important markets,” Spohr added.
Lufthansa will not absorb ITA Airways into its existing airlines. ITA along with its 4,000-odd employees will remain its own brand and retain its management team. The airline will operate with the same AOC.