April 12, 2024
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In a significant development within the aviation sector, German airline company Lufthansa has announced its intention to acquire a 41 percent stake in ITA Airlines, the flag carrier of Italy. This strategic move comes after Lufthansa reached an agreement with the Italian Ministry of Economy and Finance for the acquisition, which will be facilitated through a capital increase of 325 million Euros.

According to the statement released by the Lufthansa Group, this agreement marks an important milestone in their expansion plans and signifies their commitment to strengthening their presence in the Italian market. The capital increase of 325 million Euros will allow Lufthansa to secure the minority shares of ITA Airlines.

In a show of further support, the Italian government will also contribute to the capital increase by providing an additional 250 million Euros. As a result of this joint effort, ITA Airlines will be managed in collaboration with the Italians, with plans to appoint a general manager once the acquisition agreement is finalized.

Before the acquisition can be completed, it is essential for regulatory approval to be obtained from the European Commission, the governing body of the European Union. This step is crucial to ensure compliance with relevant regulations and promote fair competition within the industry.

ITA Airlines was established in October 2021 following the closure of the long-standing Alitalia airline, which had received financial assistance over its 75-year history. As a relatively new player in the market, ITA Airlines has made a notable impact, providing employment to 4,000 individuals and catering to the travel needs of approximately 10 million passengers each year, operating a fleet of 66 aircraft.

The partnership between Lufthansa and ITA Airlines is expected to bring forth various benefits for both companies, including enhanced operational capabilities, expanded route networks, and improved customer experiences. This collaboration also holds the potential to contribute positively to the economic growth and development of both Germany and Italy.

As aviation enthusiasts and industry stakeholders eagerly await the outcome of the European Commission’s review, this acquisition represents an exciting chapter in the history of both Lufthansa and ITA Airlines. With their combined strengths and resources, they are poised to make a substantial impact on the European aviation landscape and continue providing exceptional services to their passengers worldwide.

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