Following months of negotiations, the Lufthansa Group and the Italian Ministry of Economy and Finance concluded an agreement for the German airline to take a 41% stake in ITA Airways.
To this end, Lufthansa will inject 325 million euros into the Italian flag carrier by increasing its capital. The Italian government has also committed to investing in the company with a further 250 million euros.
The finalization of the contract, however, is still pending, as well as the approval of the deal by the competent authorities.
In a meeting between the CEO of Lufthansa, Carsten Spohr, and the Minister of Economy and Finance, Giancarlo Giorgetti, in Italy, it was agreed that ITA Airways will expand its fleet to 94 aircraft in 2027, from 71 jets currently.
The workforce will also grow, from 4,300 employees to more than 5,500 people at the end of the agreed investment plan.
“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”, said Spohr.
“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. In Milan, ITA serves a strong catchment area which also offers potential for growth”, he added.
According to Lufthansa, the integration with ITA will begin as soon as the agreement is approved. Italy is the group’s biggest market after Germany and the USA and the purchase of the airline was an old wish of the group, which among the agreed clauses may in the future assume all the shares.
“Today ends the journey that marked the history of the national flag carrier with the perspective of integration with an important European carrier”, celebrated Giorgetti.
Editor’s note: Title has been corrected for originally reporting a figure of 325 billion in error. Lufthansa will pay 325 million euros for 41% of ITA Airways. We apologize for the mistake.