NEW DELHI: The big German Lufthansa group will now own 41% of the Alitalia successor IT airlines. The Italian airline is the latest addition to the EU in the airline segment of the Lufthansa Group, which includes Lufthansa German Airlines, SWISS, Austrian, Brussels Airlines and Eurowings. The group reached an agreement with Italy’s Ministry of Economy and Finance (MEF) to acquire 41% of ITA through a €325 million capital increase, with an option to acquire all remaining shares at a later date.
ITA flies to India and will be the third group airline to be represented here after Lufthansa and SWISS. Austrian used to fly to India, but has stopped flying for a few years.
Deutsche Lufthansa AG CEO Carsten Spohr said: “The agreement (May 25) will result in a win-win situation for Italy, ITA Airways and the Lufthansa Group.” And it’s good news for Italian consumers and for Europe, because a stronger ITA will increase the competition strengthen the Italian market. As a young company with a modern fleet and its efficient and expanding hub in Rome, ITA is a perfect fit for the Lufthansa Group.”
“In Milan, ITA serves a strong catchment area that also offers growth potential. As part of the Lufthansa Group family, ITA can develop into a sustainable and profitable airline connecting Italy to Europe and the world. At the same time, this investment allows us to continue our growth in one of our most important markets.” Spohr added.
While the €325 million capital contribution will benefit ITA directly, MEF has also committed to a €250 million capital increase for ITA as part of the agreement. In addition, MEF and Lufthansa have agreed options to enable Lufthansa to take over the remaining shares at a later date. The purchase price for the remaining shares will be based on the business development of ITA Airways.
“The contractual conclusion of the agreement is expected to be completed shortly. The acquisition of the minority stake requires the approval of the responsible authorities. Upon completion of this transaction, ITA Airways and the Lufthansa Group are expected to immediately start working together on a commercial and operational level. “As a network airline, ITA will work closely with the Lufthansa Group to benefit from group synergies,” Lufthansa said in a statement.
ITA Airways becomes the fifth network carrier in the Lufthansa Group’s multi-brand and multi-hub system. Italy represents the most important market outside of 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 highly export-oriented economy. This is one of many reasons why business travel to and from Italy is important. For private travelers, the Mediterranean country is one of the most popular holiday destinations in the world.
ITA Airways was founded in November 2020 and employs around 4,000 people. With a fleet of 66 Airbus aircraft, it carries over 10 million passengers a year. ITA currently serves 64 destinations: 21 domestic, 33 international and 10 intercontinental routes. The Rome hub will now be used to further diversify ITA’s network into Africa and Latin America and to offer its customers improved connectivity to the southern hemisphere.
“As part of the Lufthansa Group, ITA remains an independent airline with its own management and a strong brand identity – in line with the successful multi-hub, multi-brand and multi-AOC strategy of the Lufthansa Group. At the same time, ITA can benefit from group synergies, such as access to the partner network, central revenue management and use of the Lufthansa Group’s global sales and marketing channels.
ITA flies to India and will be the third group airline to be represented here after Lufthansa and SWISS. Austrian used to fly to India, but has stopped flying for a few years.
Deutsche Lufthansa AG CEO Carsten Spohr said: “The agreement (May 25) will result in a win-win situation for Italy, ITA Airways and the Lufthansa Group.” And it’s good news for Italian consumers and for Europe, because a stronger ITA will increase the competition strengthen the Italian market. As a young company with a modern fleet and its efficient and expanding hub in Rome, ITA is a perfect fit for the Lufthansa Group.”
“In Milan, ITA serves a strong catchment area that also offers growth potential. As part of the Lufthansa Group family, ITA can develop into a sustainable and profitable airline connecting Italy to Europe and the world. At the same time, this investment allows us to continue our growth in one of our most important markets.” Spohr added.
While the €325 million capital contribution will benefit ITA directly, MEF has also committed to a €250 million capital increase for ITA as part of the agreement. In addition, MEF and Lufthansa have agreed options to enable Lufthansa to take over the remaining shares at a later date. The purchase price for the remaining shares will be based on the business development of ITA Airways.
“The contractual conclusion of the agreement is expected to be completed shortly. The acquisition of the minority stake requires the approval of the responsible authorities. Upon completion of this transaction, ITA Airways and the Lufthansa Group are expected to immediately start working together on a commercial and operational level. “As a network airline, ITA will work closely with the Lufthansa Group to benefit from group synergies,” Lufthansa said in a statement.
ITA Airways becomes the fifth network carrier in the Lufthansa Group’s multi-brand and multi-hub system. Italy represents the most important market outside of 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 highly export-oriented economy. This is one of many reasons why business travel to and from Italy is important. For private travelers, the Mediterranean country is one of the most popular holiday destinations in the world.
ITA Airways was founded in November 2020 and employs around 4,000 people. With a fleet of 66 Airbus aircraft, it carries over 10 million passengers a year. ITA currently serves 64 destinations: 21 domestic, 33 international and 10 intercontinental routes. The Rome hub will now be used to further diversify ITA’s network into Africa and Latin America and to offer its customers improved connectivity to the southern hemisphere.
“As part of the Lufthansa Group, ITA remains an independent airline with its own management and a strong brand identity – in line with the successful multi-hub, multi-brand and multi-AOC strategy of the Lufthansa Group. At the same time, ITA can benefit from group synergies, such as access to the partner network, central revenue management and use of the Lufthansa Group’s global sales and marketing channels.
