The European Commission (EC) has approved the Lufthansa Group’s investment in ITA Airways.
As a result, the Lufthansa Group will acquire 41% of ITA Airways’ shares by contributing €325 million in a capital increase. The transaction is expected to be completed in the fourth quarter of this year, subject to the implementation of remedial measures agreed with the European Commission and approval by non-European authorities.
Maintaining the ITA Airways brand, it will become the fifth network airline within the Lufthansa Group. It will benefit from the scale advantages of the group’s multi-hub, multi-airline, and multi-brand system, including a global sales network, loyalty programs, and the joint procurement of aircraft and fuel.
For Lufthansa Group, Italy will become the fifth base country, with its revenue size anticipated to be the third largest, following Germany and the USA. Italy is Europe’s third-largest economy with strong export capabilities and numerous globally popular vacation destinations. Rome’s Fiumicino Airport will become the group’s sixth hub and its southernmost. The implementation of codeshare flights will create over 1,000 new connecting options, expanding choices for flights to South America, North Africa, and the Middle East.
ITA Airways’ loyalty program, ‘Volare’, will participate in Lufthansa Group’s ‘Miles & More’ loyalty program. This will enable the mutual use of lounges for elite members. Future plans include joining Star Alliance.
As a result of negotiations with the authorities, concessions have been made to transfer takeoff and landing slots at Milan Linate Airport to competitors operating short-haul routes. Nearby routes connecting Italy and Lufthansa Group’s hub airports will be taken over by competitors. They will also operate routes from Rome to European competitor hub airports, improving competition on long-haul routes from Rome to North America.
The Lufthansa Group consists of about 300 subsidiaries and affiliated companies, including Lufthansa German Airlines, Austrian Airlines, Swiss International Air Lines, and Brussels Airlines.
ITA Airways was established in November 2020 and began operations in October 2021. It owns 96 Airbus aircraft, serving 69 cities from Rome, with approximately 4,860 employees.
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