Lufthansa and Italian government reach deal for ITA Airways after impasse

German airline sought to review amounts to be paid by the carrier after poor financial results, but conditions were reportedly maintained. New deal has been submitted to the European Commission
Lufthansa and ITA Airways Airbus A320
Lufthansa and ITA Airways Airbus A320 (TJDarmstadt/MarcelX42)

Lufthansa and the Italian finance ministry have resolved their disputes and a new agreement to acquire 41% of ITA Airways has been submitted to the European Commission, the country’s government said on Monday.

The German group had sought changes to the original deal, signed in May 2023, due to the Italian carrier’s poor results.

According to reports, Lufthansa wanted to reduce the agreed value of 325 million euros by 10 million euros and keep 49% of ITA Airways.

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The Italian government, however, refused to make any changes. To be accepted by the European Commission, the sale to Lufthansa will involve the transfer of slots at Milan and Rome airports to competitors.

According to sources from Corriere Della Serra, Lufthansa is expected to sell routes at Linate Airport to easyJet. Air France-KLM and the IAG Group (the holding company that controls British Airways, Iberia, among others) will take over flights from Rome Fiumicino to San Francisco, Washington and Toronto.

ITA Airways was created in November 2020 as a replacement for the struggling Alitalia. The new airline took over the flights and part of the aircraft fleet of its predecessor on October 15, 2021.

Despite starting from scratch, the carrier soon posted significant losses.

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