Lufthansa is closer to securing approval for an agreement to purchase a 41% stake in ITA Airways, the Italian state airline that took over Alitalia’s role.
The German group depends on the approval of the European Commission, which is the antitrust authority in this case. According to three Reuters sources, regulators are inclined to approve the deal.
The Italian government founded ITA Airways as a solution to replace the bankrupt AIitalia in 2020. The new airline received an injection of financial resources and also took over part of the predecessor’s fleet and routes, starting flights in October 2021.
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Despite starting from scratch, ITA soon proved to be in deficit and the following year, the Italian government began talking to groups interested in bidding for part of the company’s shares.
The MSC Group and Lufthansa, the Air France-KLM/Cestares consortium and Indigo Partners presented initial proposals, but after back and forth the government signed a letter of intent with the German airline in January 2023.
Last May, Lufthansa agreed to take over 41% of ITA Airways, with the possibility of acquiring the remaining shares in the future.
Compensation offered by Lufthansa
The German airline said it will not include ITA in its joint venture with United Airlines and Air Canada on flights to North America over the next two years.
ITA, however, is expected to change alliances, leaving Sky Team to join Star Alliance. Lufthansa has also committed to giving up some slots at Milan Linate Airport to competitors easyJet and Volotea.
