Lufthansa acquires 41 per cent stake in ITA Airways.

Italy and Lufthansa reached a deal on Wednesday for the German airline to acquire a minority stake in state-owned ITA Airways, following two years of talks.

Lufthansa has acquired a 41 per cent stake in ITA Airways, the successor to Alitalia as Italy's flag carrier, through a €325 million capital raise.

The remaining 59 per cent is still held by the Italian ministry of economy and finance however Lufthansa's stake is set to gradually increase to 100 per cent by 2033, for a total investment of €829 million.

Under the agreement, Lufthansa has operational control of ITA Airways although the Italian state retains the right of review over strategic decisions.

A five-member board of directors of ITA Airways was named on Wednesday, with Joerg Eberhart appointed as CEO and Sandro Pappalardo chairman.

Eberhart, a former CEO of Air Dolomiti, is currently head of strategy for Lufthansa, while Italian air force pilot Pappalardo is a member of the board of directors of Italy's state tourism agency Enit.

Last summer the European Commission approved the ITA Airways deal, which dates back to 2023, subject to certain conditions to protect EU competition laws, including the sale of flight slots in Milan.

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