Lufthansa buys 41% of ITA shares: 'In our group the company will grow and make profits'
Lufthansa will obtain a 41% stake in ITA for 325 million euros through a capital increase.
Lufthansa
ITA Airways
Star Alliance
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FCO
Deutsche Lufthansa AG reached an agreement today with the Italian Ministry of Economy and Finance (MEF) to The acquisition of a minority stake in the Italian flag carrier ITA Airways (Italia Trasporto Aereo S.p.A.). Lufthansa will obtain a 41% stake in ITA for 325 million euros through a capital increase.
Fresh money in ITA's coffers
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The capital contribution thus directly benefits the company. As part of the agreement, the MEF also committed to a capital increase of 250 million euros in ITA. In addition, the MEF and Lufthansa have agreed on options to allow for a possible takeover of the remaining shares by Lufthansa at a later date. The purchase price of the remaining shares will be based on ITA Airways' business development.
Between the money currently in the till and the new cash injections, the company will have an endowment of nearly 1 billion euros with which to achieve the set goals.
Next steps
Contractual finalization of the agreement is expected soon. The acquisition of the minority share is subject to the approval of the relevant authorities. Upon the closing of this transaction, ITA Airways and Lufthansa Group are expected to immediately begin their commercial and operational cooperation. As a network airline, ITA will cooperate closely with Lufthansa Group to benefit from group synergies.
Fiumicino new hub for the global south
ITA Airways will become the fifth network carrier in Lufthansa Group's multibrand, multihub system. Italy is the most important market outside the Group's home countries and the United States. Italy is the third largest economy in Europe in terms of gross domestic product, with a strong export-oriented economy. This is one of the many reasons why business travel to and from Italy is important. For private travelers, the Mediterranean country is one of the world's most popular leisure destinations.
The Rome hub is ideally located to further diversify the ITA's network to Africa and Latin America, offering its customers Better connectivity with the Southern Hemisphere.
ITA Airways independent, but part of a large group
As part of Lufthansa Group, ITA will remain an autonomous airline with its own management and strong brand identity, in line with Lufthansa Group's successful multi-hub, multi-brand and multi-AOC strategy. At the same time, ITA can benefit from the Group's synergies, such as access to the partner network, central revenue management, and the use of Lufthansa Group's global sales and marketing channels.
To ensure that ITA's growth is sustainable, Lufthansa Group plans to expand intermodal transport for feeder traffic within Italy. To this end, the Lufthansa Group signed a Memorandum of Understanding with Ferrovie dello Stato Italiane S.p.A. last February. The goal of the partnership is to transport more and more passengers to Italy with rail connections to and from the respective air ports at various Italian airports. The Lufthansa Group already operates similar intermodal cooperation programs in its domestic markets, including Deutsche Bahn, Austrian ÖBB and Swiss Federal Railways.
