Lufthansa’s planned €325m purchase of a 41% stake – ultimately a partial takeover – in Italy’s ITA Airways has been formally approved by the European Commission’s competition authority, which has ruled that the deal would not be anti-competitive in the Italian market.
ITA – which grew out of failed Italian flag carrier Alitalia – will join Lufthansa, Brussels Airlines, Austrian Airlines, SWISS and Eurowings in the Lufthansa Group when the transaction completes in the final quarter of this year.
Lufthansa will have to ensure competition continues to exist in Italy through agreements with rival short haul operators.
As well as safeguarding ITA’s previously uncertain future, the deal will give Lufthansa a significant expanded presence in Italy, operating from its base at Rome-Fiumicino.
Lufthansa CEO Carsten Spohr said: “The entry at ITA Airways strengths the internationalisation of the Lufthansa Group. We offer our guests significantly more choice of connections and destinations. With the 5-star hub in Rome, we also expand our premium offer and better connect strategic future markets south of the equator to our network.”
He added: “Despite the comprehensive and far-reaching concessions, the participation in ITA Airways strengthens the position of the Lufthansa Group in global competition. We will make ITA Airways a strong and successful part of our company and, thus, secure its future as an international airline and strong brand. ITA Airways will support us in further expanding our position as the number one in Europe.”
