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ITA Airways and the 835 million euro deal: the future of the company with Lufthansa

Lufthansa acquires 41% of ITA Airways for 325 million euros. By 2033, the German company will complete the total acquisition of the former Alitalia.

ITA Airways and the 835 million euro deal: the future of the company with Lufthansa

The shareholders' meeting of ITA Airways has made official the entry of Lufthansa as new partner of the Italian airline. The German company has acquired 41% of ITA's shares with an initial investment of 325 million euros, marking the conclusion of the first phase of an agreement that provides for the complete transfer of ownership by 2033.

Founded in 2021 as a successor to Alitalia, ITA Airways was created with the aim of being sold to a large international partner. After years of negotiations, in 2023 Giorgia Meloni's government reached an agreement with Lufthansa, which aims to complete the acquisition of the Italian company through further capital increases. The cThe total cost of the operation is estimated at 835 million euros.

The details of the agreement

With the acquisition of 41%, Lufthansa officially becomes a shareholder of ITA Airways, while the the remaining 59% of the shares remain in the hands of the Italian Ministry of Economy and FinanceThe plan foresees that, in the next few years, the German company gradually increases its stake, reaching 90% by 2028 and the 100% within the 2033.

The shareholders' meeting, in addition to formalizing the agreement, also redefined the company's top management to reflect the new ownership balance. Jörg Eberhart, Lufthansa manager appointed CEO, while Sandro Pappalardo, an air force pilot and ENIT advisor has been chosen as President representing the Italian State.

From Alitalia's difficulties to the sale of ITA Airways

ITA Airways was born in 2021 with the aim of restoring Alitalia's disastrous balance sheet, the historic Italian airline that for decades faced financial crises. The new company inherited much of Alitalia's operational structure, including licenses, aircraft and a portion of the original company's personnel.

Since its foundation, the Italian State's strategy has been clear: to make ITA a leaner and more sustainable airline for attract international investors. After years of research, in 2023 the Italian government finalized the agreement with Lufthansa, which was then approved by the European Commission.

The conditions imposed by the European Commission

Lufthansa's entry into ITA Airways was not without obstacles. The European Commission approved the acquisition only after imposing conditions to ensure compliance with competition rules.

In particular, the Commission has requested the divestment of certain routes “issues" for to prevent Lufthansa from assuming a dominant position on the European market. Some of the changes requested by the EU threatened to undermine the entire agreement, but in the end Lufthansa and the Italian government found a compromise.

The future of ITA Airways under Lufthansa leadership

With the entry of Lufthansa, ITA Airways aims to strengthen its position on the international market. The German company will bring its experience and management models to ITA, with the aim of make it competitive in the most profitable sectors, such as long-haul routes.

Meanwhile, the Italian government has assured that the the transfer of ownership will be gradual and will be done in a way that ensures job stability and operational continuity of the company.

A historic moment for the Italian aviation sector

The agreement between ITA Airways and Lufthansa represents a significant step in the history of Italian aviation. For years, Alitalia has been the symbol of the structural and financial difficulties of the sector, but with the entry of Lufthansa, ITA has the opportunity to write a new chapter.

If managed correctly, the acquisition could not only ensure the survival of an Italian flag carrier, but also transform it into a competitive and sustainable player.

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