Lufthansa has reached agreement to take a significant minority 41% stake in Italian carrier ITA Airways in return for pumping €325m of fresh capital into the airline.
Lufthansa Group chief executive Carsten Spohr said: “Today’s agreement will lead to a win-win situation for Italy, ITA Airways and Lufthansa Group – a stronger ITA will invigorate competition in the Italian market.”
Lufthansa will, ultimately, take joint management of ITA once the deal is completed. The German carrier will also choose ITA’s next chief executive.
Lufthansa has been in talks over a deal for ITA since the start of this year, but the talks were extended beyond their initial late April deadline. Mr Spohr finalised the deal with Italy’s finance minister Giancarlo Giorgetti, in Rome, this week.