The European Commission has approved Lufthansa Group’s planned acquisition of a 41 percent stake in ITA Airways, marking a significant development in the airline industry. This acquisition is expected to be completed in the fourth quarter of 2024, with ITA Airways set to integrate swiftly into the Lufthansa Group while retaining its brand.
Carsten Spohr, Chief Executive Officer of Deutsche Lufthansa AG, welcomed the approval, stating, “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.”
The transaction involves Deutsche Lufthansa AG acquiring a 41 percent stake in ITA Airways for a capital contribution of 325 million euros, which was initially agreed upon in May 2023. This investment will be completed through a capital increase. Additionally, options for acquiring the remaining shares in ITA Airways have been arranged between Lufthansa Group and the Italian Ministry of Economy and Finance (MEF), which can be exercised starting in 2025.
Integration and Expansion Plans
Once the acquisition is finalized, ITA Airways will become the fifth network airline closely integrated within the Lufthansa Group’s multi-hub, multi-airline, and multi-brand system. This integration will allow ITA Airways to leverage numerous synergies, such as global sales, the Miles & More loyalty program, and aircraft and fuel purchasing.
Italy will become the Lufthansa Group’s fifth “home market,” making it the second largest market for the group in terms of revenue, following Germany and the USA. ITA Airways will continue to focus on quality and premium service with an Italian touch, enhancing its offerings and expanding its route network.
The integration will involve linking the route networks of ITA Airways and Lufthansa Group through code sharing, creating over 1,000 new transfer options. This will enhance travel options to destinations in South America, North Africa, and the Middle East. ITA Airways members of the “Volare” loyalty program will also benefit from the Miles & More program and access to lounges from the first day of the closing.
Rome-Fiumicino will become Lufthansa Group’s sixth and southernmost hub, providing ideal conditions for expanding the joint route network towards Africa and Latin America. ITA Airways currently serves 69 destinations with a modern fleet of 96 Airbus aircraft, including 23 long-haul and 73 short-haul planes.
Strengthening Competition and Market Presence
Despite comprehensive concessions, including transferring slots at Milan-Linate Airport to a competitor and ensuring additional feeder flights from Rome to European hubs, the acquisition strengthens Lufthansa Group’s position in global competition. The integration will support ITA Airways in becoming a strong and successful part of Lufthansa Group, securing its future as an international airline.
Carsten Spohr emphasized, “The acquisition of ITA Airways strengthens the internationalization of the Lufthansa Group. We offer our guests a significantly greater choice of connections and destinations, and with the 5-star hub in Rome, we are also extending our premium offering and better connecting strategic future markets south of the equator to our network.”
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