Lufthansa buys 
into Italy — August 2024

Lufthansa has finally been given the green light to acquire a major stake in Italia Trasporte Aereo (ITA), the latest phoenix-like reincarnation from the ashes of the failed Alitalia.

For a modest €325m injection of new capital into the airline (matched by €250m new equity from the Italian government), Lufthansa will get a 41% stake, two of the five seats on the board, and the right to appoint ITA’s CEO. ITA will be under joint operational control of Lufthansa and the Italian Ministero dell’Economia e delle Finanze (MEF), and the deal is structured in such a way that Lufthansa will not need to consolidate ITA in its accounts. There is a clause giving Lufthansa the right for a full takeover with call options between 2025 and 2033, and the Italian government put options, subject to undisclosed conditions.