German Lufthansa to Finally Acquire Italian National Carrier ITA Airways, and More

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Lufthansa Secures €325 Million Deal for ITA Airways Stake

Lufthansa Group and Italy's Ministry of Economy and Finance (MEF) have reached a final agreement on acquiring a 41% stake in ITA Airways for €325 million, overcoming recent price disputes.

The parties have submitted their remedy package to the European Commission, maintaining the original economic terms from their 2023 agreement.

Key Points

• The deal structure involves Lufthansa acquiring an initial 41% stake through a €325 million capital increase, with MEF injecting an additional €250 million.
• Lufthansa retains the option to purchase the remaining 59% stake later, with pricing based on ITA's business performance.
• Required remedies include:
  • Opening routes between Rome-Milan and Central European airports to competitors
  • Addressing competition concerns on transatlantic routes
  • Releasing slots at Milan Linate Airport

What It Means

This acquisition represents a significant consolidation in European aviation, strengthening Lufthansa's presence in Southern Europe.

The deal would integrate ITA Airways into Lufthansa's network of hubs, including Frankfurt, Munich, Brussels, Vienna, and Zurich.

For Italy, this partnership provides stability for its national carrier, which the EC noted might struggle to survive independently.

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