Lufthansa has made a bold move to expand its position in the European airline market. The airline giant will acquire a 41% stake in ITA Airways, Italy’s national carrier. This deal strengthens Lufthansa’s European operations and global network.
Italy’s government has long sought to privatize ITA Airways. After years of attempts, they reached an agreement. Initially, Lufthansa considered buying a stake in TAP Air Portugal but chose ITA. The €325 million deal allows Lufthansa to grow its influence in a crucial market.
Despite the agreement, regulators have delayed the deal. The European Union’s competition commission raised concerns about competition. Lufthansa’s presence in Europe and ITA’s hubs in Rome and Milan could harm rivals, especially on routes to the US and Central Europe.
The commission launched a deeper investigation. Lufthansa agreed to exclude ITA from joint ventures with United Airlines and Air Canada. This addressed competition concerns. The deal now seems close to approval, though negotiations on the price for the remaining stake continue.
This acquisition marks a key point for Lufthansa. It will improve profitability and connections between Italy and Europe. ITA will enhance Lufthansa’s network, benefiting passengers.
As the deal progresses, Lufthansa’s move could reshape the European market and offer new growth opportunities.
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