On Wednesday, Italy and Lufthansa finalised an agreement that sees the German airline acquiring a minority stake in ITA Airways. The state-owned airline, which succeeded Alitalia, will now operate under Lufthansa’s management.
Joerg Eberhart, previously Lufthansa’s chief strategy officer, was appointed as the new chief executive of ITA Airways during a shareholders’ meeting that formalised the deal.
Eberhart commented, “This milestone follows over two years of dedication. It enables us to enhance ITA Airways’ growth, solidifying its status as Italy’s leading carrier.”
Despite Lufthansa taking operational control, the Italian government retains the authority to review major strategic decisions, ensuring national interests are safeguarded.
The agreement marks a pivotal moment in a partnership that has been long in the making. Lufthansa initially acquired a 41% stake through a €325 million capital investment, with plans to eventually own 100% for a total of €829 million.
Lufthansa’s CEO, Carsten Spohr, described the acquisition as the largest in the company’s history. “This move significantly expands our footprint and capabilities,” he said.
The deal’s finalisation came after the European Commission approved necessary competition measures, including the sale of certain airport slots to other carriers.
Negotiations for this acquisition date back to May 2023, following years of Italy’s unsuccessful attempts to find a buyer for Alitalia. Italy established ITA Airways in October 2021 after Alitalia declared bankruptcy, having been under public administration since 2017. The Italian government had invested over €13 billion to support the failing airline.
Lufthansa previously made attempts to purchase a stake in Alitalia in 2009 and 2019 but was unsuccessful. With ITA now part of its portfolio, Lufthansa aims to strengthen its operations across the Americas, Africa, and Asia. The group’s current holdings include Brussels Airlines, Austrian Airlines, Eurowings, Swiss, and Italy’s Air Dolomiti.
