Lufthansa Group buys into Italy's ITA Airways

The European Commission has decided the German conglomerate can take joint control of the carrier with the Italian government, adding it to a grouping that includes Swiss, Austrian Airlines, Brussels Airlines and Eurowings.

Lufthansa Group will take a 41% stake in ITA, which began flying in 2021 after the collapse of former Italian flag carrier Alitalia. The German giant will pay €325 million for its shareholding, with the deal due to be completed by the end of the year. Lufthansa has the option for a 100% stake but will wait to see how ITA progresses.

Before the deal is concluded, Lufthansa Group must satisfy competition authorities outside the EU and offer remedies, including giving up slots at Milan’s Linate airport.

Lufthansa Group chief executive Carsten Spohr said: “We will make ITA Airways a strong and successful part of our company and thus secure its future as an international airline and strong brand. ITA Airways will support us in further expanding our position as number one in Europe."

Lufthansa said ITA would strengthen competition in Italy, “which is currently characterized by a superior position of low-cost airlines”. ITA is a SkyTeam member and will likely make the transition to Star Alliance, in which the Lufthansa Group sits.

ITA carried 15 million passengers last year and has a fleet of 96 Airbus aircraft, including 23 long-haul and 73 short-haul. It serves 69 destinations.