Germany's Lufthansa To Take 90 Pct Stake In ITA Airways

FRANKFURT, May 12 (Bernama-dpa) -- Germany's Lufthansa Group intends to acquire a majority stake in the formerly state-owned Italian airline ITA Airways as soon as possible, chief executive Carsten Spohr announced at the company's annual general meeting in Frankfurt on Tuesday. 

The group's shareholders gathered in person in Frankfurt for an AGM for the first time since 2019, with further celebrations being held to mark the 100th anniversary of Lufthansa's founding, reported German news agency dpa.

Spohr said Lufthansa's stake in ITA is set to rise from 41 per cent to 90 per cent when options are exercised in June, although completion of the transaction is not expected until the first quarter of 2027 with regulatory approval necessary. 

The purchase price for the second tranche is a fixed €325 million (US$381 million). 

Lufthansa is expected to be able to acquire the remaining 10 per cent from 2028 onwards. 

ITA, the successor to Alitalia, is the fourth formerly state-owned airline acquired by Lufthansa, after those in Austria, Switzerland and Belgium.

As a national airline with only one home market, Lufthansa would not be globally competitive, Spohr explained. Currently, only around 20 per cent of the group’s turnover is generated in Germany. 

The next takeover target is the Portuguese airline TAP, for which Lufthansa – in competition with Air France/KLM – initially intends to submit a binding offer to the authorities for a minority stake.

With ITA, Lufthansa is acquiring a thoroughly restructured, state-of-the-art airline. According to Spohr, ITA has the most modern fleet in the group. Of the 106 aircraft, with an average age of 6.5 years, around 70 per cent meet the very latest standards, including in terms of kerosene consumption and thus CO2 emissions.

--BERNAMA-dpa