Lufthansa's Strategic Acquisition of ITA Airways: A Boost for European Aviation

Lufthansa Group has finalized its acquisition of a 41% stake in Italian state-owned airline ITA Airways in a deal worth $353 million. This strategic move is set to strengthen Lufthansa's position in the European aviation market and expand its offerings as a network airline. The transaction, approved by the European Commission following a year-long investigation, was concluded on January 17, 2025.

ITA Airways, the successor airline to bankrupt Alitalia, has been growing since its inception in 2021. With a modern, environmentally friendly Airbus fleet of 99 aircraft, including 22 long-haul Airbus A350-900, Airbus A330-900neo, and A330-200 aircraft, ITA Airways flies to almost 70 destinations around the world. The airline's home base is Rome Fiumicino Airport, a five-star Skytrax airport, and Milan Linate Airport, a metropolitan airport in the economically strong northern Italy region.

With this acquisition, Italy becomes a further "home market" for the Lufthansa Group, which is already the company's second most important international market after the USA, outside the existing home markets of Germany, Austria, Switzerland, and Belgium. Rome Fiumicino Airport will be the sixth and southernmost Lufthansa Group hub, while Milan-Linate will play a prominent role in the group.

Carsten Spohr, CEO of Deutsche Lufthansa AG, expressed his enthusiasm for the partnership: "We are proud to welcome ITA Airways to the Lufthansa Group. This investment strengthens the Italian and European markets while improving offerings and connections for our passengers starting this summer."

The integration of ITA Airways into the Lufthansa Group will deliver immediate benefits to customers of both airlines. Starting with the summer 2025 flight schedule, ITA Airways frequent flyers will be able to collect their points or miles either in ITA Airways' existing "Volare" program or already in Miles & More, the Lufthansa Group's loyalty program. In addition, Miles & More participants will have the opportunity to earn and redeem miles on ITA Airways flights. Further collaborations, such as joint codeshare connections, mutual use of the respective lounges, and the planned admission to the Star Alliance aviation alliance, are to follow successively.

The European Commission's approved remedies, following its investigation into Lufthansa's acquisition of a 41% stake in ITA Airways, aim to address competition concerns and maintain a level playing field for rival airlines. These remedies include slot transfers at Milan Linate Airport and enhancing competitiveness on transatlantic and Central European routes. By implementing these remedies, the European Commission seeks to ensure that the acquisition does not lead to a dominant position for Lufthansa and ITA Airways, thereby protecting the interests of consumers and maintaining a healthy competitive environment in the aviation market.

In conclusion, Lufthansa Group's acquisition of a 41% stake in ITA Airways is a strategic move that will strengthen the group's market position in Europe and expand its offerings as a network airline. The integration of ITA Airways into the Lufthansa Group will deliver immediate benefits to customers of both airlines, while the European Commission's approved remedies aim to maintain a healthy competitive environment in the aviation market.