German flag carrier Lufthansa has revealed that it would be pursuing a stake in Italian airline ITA Airways. The airline formally submitted its offer to the Italian Ministry of Economy and Finance earlier today. Initially, the airline is looking to procure a minority stake in the Italian carrier, though it would take options to purchase the remaining stakes in the airline.
ITA Airways was formed from the ashes of former Italian flag carrier Alitalia in October 2021. The carrier is currently state-owned, though Italy is looking to offload it to private ownership. Lufthansa (in partnership with MSC Group) was one of three parties to express interest in the carrier. The other interested parties were the Air France-KLM Group and Indigo Partners, though the latter failed to place an initial bid for the airline.
Is Lufthansa 2nd best?
Lufthansa isn't Italy's first choice when it comes to offloading ITA Airways. In August, it was reported that Italy had chosen the Air France-KLM Group bid as its preferred option. This opened the door for a period of exclusive talks between the two parties. The Ministry of Finance had said that an agreement would only be signed if "the outcome will be fully satisfactory for the public shareholder."
At the time, Lufthansa commented,
"We take note of the decision of the Italian government. Our joint offer together with MSC was the better solution for ITA, from our point of view. Apparently, a path is now being chosen that allows for more state influence and does not provide for a complete privatization of ITA."
2nd time lucky?
The exclusivity period with Air France-KLM expired without an agreement. There is no mention of MSC Group in Lufthansa's latest bid, and Simple Flying has reached out to the carrier to find out if they are still involved. Today, the airline submitted a new proposal for the Italian carrier, showing its eagerness to acquire the airline.
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The German flag carrier hopes to sign a Memorandum of Understanding with the Italian Government, which would allow it to have its own exclusivity in talks. Lufthansa commented that,
"These talks would primarily focus on the form of a possible equity investment, the commercial and operational integration of ITA into the Lufthansa Airline Group, as well as resulting synergies. In case of a binding agreement is reached, its implementation would be subject to approval by the relevant authorities."
Lufthansa's Italian interest
ITA isn't the only interest that Lufthansa has in Italy. The airline also has a wholly owned subsidiary dedicated to Germany-Italy flights called Air Dolomiti. According to data from Cirium, it has flights to 10 Italian destinations scheduled from Frankfurt and Munich this month.
Commenting on its Italian interest, Lufthansa said that the county is its "most important market outside of its home markets and the US." The carrier added,
"Italy's importance for both business and private travel lies in its strong export-oriented economy and status as one of Europe's top vacation spots."
What do you make of Lufthansa's bid for ITA Airways? Let us know what you think and why in the comments below by pressing the blue button!
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Lufthansa
- IATA/ICAO Code:
- LH/DLH
- Airline Type:
- Full Service Carrier
- Hub(s):
- Frankfurt Airport, Munich Airport
- Year Founded:
- 1953
- Alliance:
- Star Alliance
- Airline Group:
- Lufthansa Group
- CEO:
- Carsten Spohr
- Country:
- Germany
-
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ITA Airways
- IATA/ICAO Code:
- AZ/ITY
- Airline Type:
- Full Service Carrier
- Hub(s):
- Rome Fiumicino Airport
- Year Founded:
- 2020
- Alliance:
- SkyTeam
- CEO:
- Fabio Lazzerini
- Country:
- Italy
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