Lufthansa Eyes Full ITA Airways Takeover

Lufthansa Group has won approval to purchase a 41% stake valued at USD 350 million in ITA Airways to enhance Group connectivity to and from Italy.

However, the Group’s ambitions with the airline don’t stop at just 41%. The CEO, Carsten Spohr, recently stated that a 90% stake would be possible.

These comments to Corriere della Sera reaffirm the Group’s stance for a considerable period when analysing ITA Airways and the potential for future stake increases.

While the initial stake is 41%, Lufthansa Group says that from early 2025, this can potentially rise upwards to 90%. If this move were to be executed, it would represent a majority stake and thus give Lufthansa Group the primary control over the Italian airline.

A 90% stake is touted as a middle ground for the Group to get its desired control. However, the Italian government still has a stake, even if it only equates to 10% in the carrier replacing Alitalia.

Lufthansa Group believes that the acquisition of ITA Airways will be huge for its long-term growth in the European sector. Italy is typically a market that Lufthansa has struggled to grab hold of amid heightened competition. However, now having access to ITA and Rome, this is expected to increase and provide greater access to markets worldwide.

Interest in obtaining a majority stake in ITA Airways has been documented since 2023 when the Group’s strategy was to start smaller and work up to a more controlling stake.

Furthermore, after much deliberation, the EU approved the first stake, so Lufthansa Group can better assess the airline’s performance, including financials.

Analysts have expressed concern about ITA Airways’ financial performance and long-term viability, which may deter Lufthansa Group from making its stake a majority. However, now that the Italian carrier is under the wing of the major group, things are expected to stabilise considerably.

Lufthansa Group has stated that ITA Airways will now have access to all the relevant synergies and assets that come with being part of the family. As a result, these should all aid the airline’s development as a leading airline across Europe and the world.