Lufthansa reaches agreement to buy 41% of ITA Airways
Lufthansa will take a 41% stake in ITA Airways through a 325 million euro capital increase that will go directly to the Italian airline, the German group said Thursday.
Lufthansa CEO Carsten Spohr met in Rome with Italian Economy Minister Giancarlo Giorgetti to finalize the talks, which began in January but extended beyond the initial April 24 deadline.
“Today’s agreement will be a win-win situation for Italy, ITA Airways and Lufthansa Group… a stronger ITA will strengthen competition in the Italian market,” Spohr said.
Lufthansa Group stated in its release that it will also jointly manage ITA, including the appointment of a chief executive officer for the airline once the deal closes.
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The €325 million it will inject into ITA will come from the Lufthansa Group’s existing liquidity, it said. The Italian Treasury will provide a further €250 million to the Italian airline.
“The closing of the transaction after contractual completion remains subject in particular to regulatory approvals, especially by the European competition authority,” it said in the statement.
ITA’s business plan calls for revenue growth of €2.5 billion in 2023 and €4.1 billion in 2027, according to a statement from the Ministry of Economy and Lufthansa.
ITA expects its fleet to grow to 94 aircraft from the current 71 by the end of 2027, and expects its workforce to grow to more than 5,500 from 4,300 this year.
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