There should be an announcement coming from Rome later today that Lufthansa and the Italian government have reached an agreement for the German airline to take over the former Alitalia that has been money-losing for the better part of the past two decades and which has been rebooted several times.
Lufthansa Group is expected to invest 300 million euros in ITA Airways, which will see it getting a 40% stake that is later increased to 90% after an additional 500 million euro payment. The Italian government is planning to hold onto a 5% to 10% stake in the airline.
You can access ITA Airways here.
The Italian government is still meddling and has required promises from Lufthansa per QuiFinanza:
The long phase of the negotiations was conditioned not only by the financial details but also by elements of a more industrial nature . In fact, the Italian government has asked for reassurances on the fact that ITA Airways will maintain direct long-haul operations , being one of the hubs of international traffic.
The key element of the negotiations is also the future of the two airports of Fiumicino and Malpensa , with a rebalancing in favor of the capital and a recovery of importance of Linate airport.
And Corriera Della Sera:
Lufthansa should enter Italy through a reserved capital increase – as envisaged by the latest privatization decree – reaching up to 40% of the Italian carrier. The Germans initially proposed an initial investment of 250 million, but after lengthy negotiations the figure rose to 320-330 million. In the first half of 2026 – with ITA which should record its first operating breakeven – Lufthansa will be able to trigger the clause which provides for the purchase of another 50-55% for around 500 million euros. At that point, 5-10% would remain in the ministry.
Air France – KLM and Delta Air Lines were to become part owners of ITA Airways at some points, but it seems that the negotiations with Lufthansa are all but signed.
Lufthansa Group already owns several airlines besides its namesake Lufthansa that include Swiss, Austrian, Brussels, and Eurowings.
It is interesting to see what concession Lufthansa and ITA Airways must make to get this deal through the competition authorities.
I certainly hope that Lufthansa knows what it is buying into. ITA Airways predecessors of several Alitalia’s have been chronically unprofitable and billions have been lost by the Italian taxpayers and Etihad funding the mess.
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