Lufthansa takes 41% stake in ITA Airways
Lufthansa takes 41% stake in ITA Airways to boost European dominance
Deutsche Lufthansa AG has officially completed the acquisition of a 41% stake in Italian carrier ITA Airways for €325 million ($334 million), a significant move that strengthens the airline’s position within Europe.
This acquisition, which was finalized late on Friday, follows Lufthansa’s initial offer for the stake made in January 2023. The agreement leaves the remaining 59% of ITA Airways under the ownership of Italy’s Ministry of Economy and Finance, though both parties have negotiated options for Lufthansa to purchase the remaining shares, reports Bloomberg.
Expanding European Reach
The investment represents a strategic effort by Lufthansa to expand its footprint in one of Europe’s largest aviation markets, Italy. The purchase strengthens Lufthansa’s dominance within Europe, positioning the airline group as the continent’s leading player.
ITA Airways, which succeeded Alitalia, provides Lufthansa with an opportunity to tap into a valuable network of routes, particularly in the Mediterranean and long-haul sectors.
“With our investment, we will now strengthen the Italian and European aviation market and the position of the Lufthansa Group as number one in Europe,” said Carsten Spohr, Lufthansa’s CEO. This acquisition is part of the company’s broader strategy to enhance its competitive edge and maintain its status as Europe’s premier airline group.
Regulatory Scrutiny and Market Implications
The acquisition has faced rigorous scrutiny from the European Commission, particularly with regard to its potential effects on competition in the long-haul travel market. Lufthansa’s consolidation of its European operations could lead to increased competition concerns, although the company has expressed confidence in its ability to meet regulatory requirements.
This deal is significant not only for Lufthansa but for the broader European aviation industry, which has been undergoing consolidation in recent years. With rivals like Air France-KLM and International Airlines Group (IAG) continuing to expand, Lufthansa’s acquisition of ITA Airways reflects the growing trend of airline partnerships and acquisitions aimed at optimizing network efficiency.
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