Lufthansa Group has secured European Commission approval to acquire a 41% stake in ITA Airways for €325 million, marking a significant step towards full ownership by 2025. The approval, which follows negotiations with the European Commission on competition law clearance, allows Lufthansa to proceed with the acquisition of the minority stake in ITA Airways (Italia Trasporto Aereo S.p.A.), eventually leading to full control of the Italian airline.
The transaction, initially agreed upon in May 2023, will be executed through a capital increase and is expected to finalize in the fourth quarter of 2024, subject to the implementation of EU Commission-negotiated remedies and approvals from other global competition authorities. The deal includes options for purchasing the remaining ITA Airways shares, which can be exercised from 2025. Upon completion, ITA Airways will become Lufthansa Group’s fifth network airline, joining the ranks of Lufthansa, SWISS, Austrian Airlines, and Brussels Airlines.
This acquisition will significantly bolster ITA Airways’ economic position, establishing Italy as Lufthansa Group’s fifth “home market” and its second-largest revenue generator after Germany and the USA. The integration of ITA Airways into Lufthansa Group’s network will offer a range of benefits, including access to Lufthansa Group’s multi-hub, multi-airline, and multi-brand framework, as well as synergies in global sales, the Miles & More loyalty program, and procurement of aircraft and fuel.
ITA Airways will maintain its brand identity while benefiting from Lufthansa Group’s vast infrastructure and expertise. The deal will connect ITA Airways’ route network with Lufthansa’s existing routes, offering over 1,000 new transfer options, particularly to South America, North Africa, and the Middle East. This move will enhance competition in the Italian market, which is currently dominated by low-cost carriers.
ITA Airways, with its commitment to a premium service featuring Italian cultural elements, will offer passengers a unique travel experience. Members of its “Volare” loyalty program will be able to earn and redeem miles with Miles & More from the first day after closing, and lounges will be mutually accessible. ITA Airways also aims to join the Star Alliance soon.
The integration of ITA Airways into Lufthansa Group’s network will bring significant benefits to both companies. Lufthansa Group will expand its international presence, gain access to new markets, and strengthen its position as a leading global airline group. ITA Airways will receive the financial support and operational expertise necessary to secure its future and enhance its competitiveness. The deal also paves the way for the expansion of the joint route network to Africa and Latin America, offering customers improved connections to the southern hemisphere.
This acquisition marks a significant milestone for both Lufthansa Group and ITA Airways, representing a strategic move towards a more integrated and competitive European airline industry.
