It was a decision that the Lufthansa group had been waiting for since May 2023, when it announced its intention to take a 41% stake in the Italian airline ITA. The European Commission finally gave the go-ahead after receiving assurances that Lufthansa would withdraw from certain markets. So as not to end up in a monopoly situation. The competition authority has therefore authorised the injection of 325 million euros into ITA's capital. And to give Lufthansa 41% of the capital with an option to acquire more shares at a later date. The final transaction is scheduled for the end of 2024.
For passengers, Lufthansa's acquisition of a stake in ITA will have the following consequences: ITA Airways will become the fifth airline in the network, while retaining its own brand. Italy will become the the Lufthansa Group's fifth "domestic" market. Italy is already the second most important market for the German airline outside its domestic markets, after the United States.
ITA's 41% will return to Lufthansa before the end of 2024
Together, Lufthansa Group and ITA Airways are planning a rapid integration. This will take effect as soon as the shareholding is acquired. Numerous routes will be operated immediately on a code-share basis. This will result in more than 1,000 new connection options. This will create additional routes, especially to destinations in South America, North Africa and the Middle East. ITA Airways will also strengthen its position in Italy, which is currently dominated by low-cost airlines.
The Lufthansa Group's corporate culture will become even more international and diversified thanks to the Italian airline. ITA will integrate the Lufthansa Group's reservation and distribution systems as well as the Miles & More frequent flyer programme. The lounges will be immediately accessible to all airlines. Eventually, ITA should join Star Alliance.
Counter-parties to consolidate the competition
Rome Fiumicino will join the group's other intercontinental hubs, namely Brussels, Frankfurt, Munich, Vienna and Zurich. Rome will thus become the group's southernmost hub. In return, the Lufthansa group has made a number of concessions to the European Commission. The aim is to strengthen competition in Europe. These essentially include the transfer of traffic rights at Milan-Linate airport to a competitor on short-haul routes.
With regard to "local traffic" between Italy and the Lufthansa Group's existing domestic markets, this competitor will also take over certain routes on which Lufthansa Group Airlines and ITA Airways offer a majority of flights. Rome will benefit from additional feeder flights to the hubs of its European competitors in order to improve competition on long-haul routes from Rome to North America.
But according to Carsten Spohr, Chairman of Lufthansa's Management Board, there is every reason to be pleased: " Authorisation from Brussels is excellent news for ITA Airways, Lufthansa, and above all for all passengers travelling to and from Italy. This decision is a clear signal in favour of strong air transport in Europe." .
