
ITA Airways, Italy's flag carrier since its inception in 2020 as the successor to Alitalia, has officially joined the Lufthansa Group, marking a significant chapter in European aviation history. The European Commission gave its final approval for Lufthansa to acquire a 41% stake in ITA Airways on January 15, 2025, after months of negotiations and regulatory scrutiny. This acquisition is part of Lufthansa's strategy to expand its influence in the highly competitive European market, particularly in Italy, which is one of the largest aviation markets in Europe. The deal, initially announced in May 2023, includes Lufthansa's investment of €325 million in ITA Airways through a capital increase, with an option for Lufthansa to acquire the remaining shares over time. The agreement between Lufthansa and the Italian Ministry of Economy and Finance (MEF) was structured to ensure that ITA Airways would become part of the Lufthansa Group's multi-brand and multi-hub system, complementing existing airlines like Lufthansa, SWISS, Austrian Airlines, Brussels Airlines, and others.
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ITA Airways, based at Rome's Fiumicino Airport, one of Europe's busiest, will now leverage Lufthansa Group's extensive network, operational efficiency, and customer service standards. The integration is expected to significantly enhance connectivity for passengers traveling to and from Italy, particularly boosting long-haul routes to South America, North Africa, and the Middle East. Rome-Fiumicino is set to become the Lufthansa Group's sixth hub, further solidifying the group's presence in Southern Europe. One of the immediate benefits for ITA customers will be the transition to Lufthansa's Miles & More loyalty program, replacing ITA's Volare. This change will offer members more opportunities to earn and redeem miles across a broader network. Additionally, ITA Airways is slated to join the Star Alliance, which will further expand its global reach through codesharing and interline agreements with other alliance members. The acquisition comes with commitments to maintain competition in the Italian market. To address concerns from the European Commission, Lufthansa and the MEF agreed to divest certain routes and slots, particularly at Milan's Linate Airport, to competitors. This was to ensure that the merger did not adversely affect consumer choices or lead to monopolistic practices in the region.
The integration process involves not just commercial and operational alignment but also cultural integration, given the distinct national identities of each airline within the Lufthansa Group. ITA's workforce of approximately 5,000 employees will be integrated into the Lufthansa Group, which is known for its international and diverse corporate culture. Lufthansa has appointed Jörg Eberhart, previously with Air Dolomiti, as the new CEO of ITA Airways, indicating a strategic move to ensure a smooth transition. This acquisition is seen as a strategic move for Lufthansa to further its global reach and respond to the competitive pressures in the airline industry, including the rise of low-cost carriers and the need for network expansion.
For ITA Airways, becoming part of the Lufthansa Group could mean a path to profitability and sustainability, lessons hard learned from Alitalia's tumultuous history. However, the full integration and realization of these benefits will likely take years to materialize, with both companies working closely to align systems, processes, and cultures. The partnership between ITA and Lufthansa represents not just a business transaction but a reshaping of the European aviation landscape, promising enhanced travel options for passengers and a stronger competitive position for Lufthansa in one of Europe's key markets.