Italy Awaits Quick EU Nod for Ita-Lufthansa Deal

Italy’s government is keen for a swift EU OK on the Ita-Lufthansa link-up. The German airline aims for a 41% share in Ita Airways.

This new airline arose after the old Alitalia folded.

Matteo Salvini, Infrastructure Minister, expressed his delight. “Resolving this long-standing issue for workers and travelers is great.

We’re waiting for a quick EU decision.”

Previously, Italy’s audit court approved Lufthansa’s 41% stake for €325 million (US$347.75 million).

Italy had sought a business partner for years, but EU approval is still needed.

Prime Minister Giorgia Meloni discussed the EU hold-up at the G20 summit in India. “The EU wanted a fix for years.”

“Now that we’ve found one, things stall. We want clear answers,” she said. Economy Minister Giancarlo Giorgetti is arranging a quick meeting.

He will talk soon with acting EU Competition Commissioner Didier Reynders, as sources from the ministry say.

After Meloni’s remarks, EU officials offered an update. They have yet to receive the Ita-Lufthansa agreement details formally.

“Nothing else to add at this time,” an EU spokesperson stated.

This past June, Italy’s financial court OK’d the agreement. It forecasts revenue growth for Ita.

Income could rise from €2.5 billion (US$2.675 billion) this year to €4.1 billion (US$4.387 billion) by 2027.

The Economy Ministry gave the go-ahead in May. Until then, they were Ita’s sole shareholders.

This approval came after Rome’s discussions with key figures.

Ita Airways started in October 2021. It’s distinct from the defunct Alitalia, which dissolved due to financial issues.

The search for a fiscal ally has been constant since then. Last February, reports suggested Lufthansa’s ambition.

They considered a 40% stake, valued between €250 and €300 million US($267.5 million to US$321 million).

Background

The deal between Ita and Lufthansa could be a turning point for Italian aviation. The fall of Alitalia left a void in Italy’s airline market.

Ita was born to fill that gap, rising from Alitalia’s financial ashes.

Germany’s Lufthansa is no stranger to big moves. The airline already has a strong foothold in Europe.

Partnering with Ita could be a win-win for both.