Lufthansa Group receives conditional approval to acquire ITA Airways

The European Commission has granted conditional approval to the planned acquisition of a 41% stake in ITA Airways (Italia Trasporto Aereo SpA) by Deutsche Lufthansa AG (Lufthansa Group).

This step marks an important milestone for both airlines, paving the way for closer integration and strengthening the Lufthansa Group’s presence in Italy.

Carsten Spohr, CEO of Deutsche Lufthansa AGexpressed enthusiasm about the approval, highlighting the benefits for passengers, workers and the European aviation industry.

He expects that ITA Airways and its talented employees will soon join the Lufthansa Group family.

Spohr believes the move sends a positive signal for a strong European air transport sector that can compete effectively on a global scale.

Details and timeline of takeover

As part of the takeover, originally agreed in May 2023, Lufthansa Group will invest €325 million through a capital increase to secure a minority stake.

The agreement provides for the possibility for Lufthansa to acquire the remaining shares at a later date.

Following the implementation of specific remedies agreed with the European Commission and potential approval by non-EU authorities, the transaction is expected to close in the fourth quarter of 2024.

Following the closure, ITA Airways will become the fifth network airline in the Lufthansa Group while retaining its brand identity.

The Italian carrier will leverage synergies in various areas, including global sales, the Miles & More loyalty program, and aircraft and fuel purchases.

This integration is expected to strengthen the financial position of ITA Airways and cement Italy’s position as the fifth “home market” for Lufthansa Group, becoming its second largest revenue generator after Germany and the US.

Focus on customer benefits and increased competitiveness

Lufthansa Group and ITA Airways plan a rapid integration process. With the addition of almost 5,000 ITA Airways employees, the corporate culture of the Lufthansa Group will gain further international diversity.

Rome-Fiumicino, a prestigious five-star Skytrax airport, will become the sixth hub of the Lufthansa Group and its southernmost gateway.

Customers will benefit immediately from codesharing, which will combine the two airlines’ offerings and create over 1,000 new connecting options, particularly to South America, North Africa and the Middle East.

ITA Airways will further intensify competition in Italy, where low-cost airlines currently dominate.

The airline’s ongoing focus on quality and premium service, combined with the integration of its Volare loyalty programme with Miles & More, will ensure a seamless travel experience for passengers.

Furthermore, access to the lounge will be two-way, and ITA Airways intends to join Star Alliance in the near future.

Strengthening our global position

“The takeover of ITA Airways strengthens the internationalisation of the Lufthansa Group,” emphasises Carsten Spohr.

The move expands the network and destinations offered to customers, enhances the premium offering with a hub in Rome and strategically connects the network with future markets in the Southern Hemisphere.

Despite the concessions made to address competition concerns, Spohr believes the investment strengthens the Lufthansa Group’s global position.

The company is committed to ensuring that ITA Airways succeeds as part of the group, ensuring its future as a leading international airline brand that contributes to maintaining the leading position of the Lufthansa Group in Europe.

While the approval will enable commercial and operational collaboration following the closing of the transaction, until then both airlines will operate independently.

The concessions agreed with the European Commission include handing over slots at Milan Linate airport to a competitor.

This will also mean abandoning some routes in neighbouring markets where Lufthansa Group and ITA Airways currently compete.

In addition, feeder flights from Rome to competing hubs will reduce competition on long-haul routes from Rome to North America.

About ITA Airways

Founded in November 2020 and commencing operations in October 2021, ITA Airways boasts a modern fleet of 96 Airbus aircraft and employs almost 4,860 people.

The Rome-based carrier carried almost 15 million passengers last year and currently serves 69 destinations.

Its hub in Rome is an ideal location to expand its shared network to Africa and Latin America, offering passengers improved connectivity to the Southern Hemisphere.

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