Lufthansa's Historic Takeover of ITA: EU Approval with Conditions

The European Commission has approved Lufthansa's acquisition of a 41% stake in Italian airline ITA, formerly Alitalia, with conditions to protect competition. The deal, valued at 325 million euros, enables the German airline to take full control by 2033. Italian Finance Minister hailed the agreement as historic, emphasizing its benefits for Italy's economy.

The European Commission on Wednesday gave the green light to Lufthansa's acquisition of a 41% stake in the Italian airline ITA, previously known as Alitalia, subject to conditions aimed at preserving competition. Italian Finance Minister Giancarlo Giorgetti lauded the transaction as 'historic.'

Lufthansa, investing 325 million euros ($350 million), will gradually take full control of ITA by 2033 with an overall investment of 829 million euros, acquiring the stake from the Italian government.

The commission's approval follows a comprehensive, year-long investigation. One key condition mandates that the merged entity must allow rival airlines to operate non-stop flights from Rome and Milan to central European airports. Additionally, it must provide competitors with access to long-haul routes linking Italy to the United States and Canada, and allocate slots at Milan's Linate airport to other airlines.

Italian Finance Minister Giorgetti emphasized that the deal liberates the Italian government from continuous financial support of the loss-making company, which reverted to state control in 2021. Under its previous guise as Alitalia, the airline experienced multiple bankruptcies and temporary ownership by Abu Dhabi's Etihad Airlines.

'And so finishes the era of state aid,' Giorgetti stated at a press conference in Rome, highlighting that the Lufthansa deal will enhance ITA's route development, benefiting the Italian economy. He noted that Rome's Leonardo Da Vinci Airport would become a pivotal hub for routes to North America, Asia, and Africa, crucial for boosting tourism.

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