ITA Airways Joins Lufthansa Group as Fifth Airline
The European Commission has approved Lufthansa Group’s acquisition of a 41% stake in ITA Airways, with conditions. The transaction, valued at 325 million euros, is set to be finalized in the fourth quarter of 2024, marking a significant move in the European aviation market.
The approval has been welcomed by Lufthansa, ITA Airways, and the Italian Ministry of Economy and Finance. Carsten Spohr, CEO of Deutsche Lufthansa AG, highlighted the importance of this decision for passengers flying to and from Italy, emphasizing the benefits for both companies. The integration of ITA Airways into the Lufthansa Group is expected to proceed swiftly after the transaction closes.
Following the acquisition, ITA Airways will become the fifth airline within the Lufthansa Group, maintaining its brand while leveraging synergies in sales, loyalty programs, and procurement. Italy will emerge as Lufthansa Group's fifth "home market," becoming its second largest market in terms of revenue after Germany and the USA. This integration aims to bolster ITA Airways' economic standing and enhance competition in the Italian aviation sector.
Rome-Fiumicino will be established as Lufthansa Group's sixth hub, enhancing connectivity and creating over 1,000 new transfer options, particularly to destinations in South America, North Africa, and the Middle East. The integration promises to improve the service offerings of both airlines, with ITA Airways' loyalty program merging with Lufthansa’s Miles & More.
Additionally, ITA Airways plans to join the Star Alliance, further harmonizing commercial processes and IT systems. This collaboration is set to strengthen the Lufthansa Group's position in global competition, enhancing its network with a premium offering centered around the 5-star hub in Rome.
The completion of the transaction is contingent upon fulfilling conditions negotiated with the EU Commission and receiving approval from other competition authorities outside the EU. The acquisition signifies a strategic expansion for Lufthansa Group, reinforcing its role as a dominant player in European and global aviation.