Lufthansa Completes 41% Takeover Of ITA Airways

After much deliberation, Lufthansa successfully closed its acquisition of the Italian carrier ITA Airways.

The deal, valued at 325 million euros, sees Lufthansa take on a minority stake valued at 41% of the Italian carrier after many years of negotiations to make the deal a reality.

In 2023, the pair announced the deal as part of Lufhtnasa’s attempts to gain greater control of a European country where it had historically struggled.

Moreover, the purchase of the minority stake was considered necessary for ITA Airways, which had been birthed after Alitalia’s collapse and questioned the market surrounding its long-term position in the industry.

By seeing Lufthansa take control even partially of ITA Airways, the Italian company now has access to more markets and, generally, more stability, allowing it to develop its fleet without as much pressure.

Like any consolidation effort, even if not a majority stake, pushback and investigations needed to occur to ensure there wouldn’t be a negative impact on consumers and competitors in the sector.

While this stake is valued at 41%, Lufthansa clearly intends to increase it to a majority eventually. The airline will assess the initial performance before proceeding.

Ultimately, this deal is labelled a new phase in both companies’ histories. Its focus is on creating strategic synergies that will allow the two airlines to grow positively in the future.

Lufthansa Group says the acquisition of ITA will help increase profits by hundreds of millions of euros in the coming months. It adds an essential pillar to the group that was not previously present.

Consolidation has been a hot topic of conversation across Europe, and it isn’t just Lufthansa pursuing ITA that has been occurring with Air Europa and TAP, among others, all being targeted by other major players.

As a result, Lufthansa is attempting to prepare itself for the future in the best possible manner to ensure it can remain competitive and agile. Arguably, this is something the mainline airline has struggled with recently, which is why cost-cutting measures are being implemented.