Italy Plans to Conclude ITA Airways-Lufthansa Deal This Month
Even though the deadline to reach a deal over the sale is not binding, a source to the matter has already revealed that the deal could be closed by mid-April. Nonetheless, the relevant authorities are yet to make an official statement on the matter, AtoZSerwisPlus.com reports.
Reuters explains that a statement issued by the Italian Treasury said that the industrial plan would determine ITA Airways’ future in terms of network and strategic goals, with analysts seeing such a merger as the only option for the company.
ITA Airways, which took the air as the successor to Alitalia back in 2021, registered a loss of about €486 million last year due to the COVID-19 pandemic. Impact on the loss had also the rising fuel costs, despite the airline registering a strong revenue of €1.58 billion.
According to Reuters, Germany’s Lufthansa is negotiating with Rome to purchase a 40 per cent stake in the airline. This percentage has been valued at around €200 million, and then the group plans on purchasing the rest of the shares in the future.
Commenting on the matter, the Chief Executive Officer of Lufthansa, Carsten Spohr, said last week that the final negotiations over the purchase of ITA Airways shares were focusing on price, considering the losses at the Italian carrier.
At the end of last year, Giorgia Meloni’s government set out the conditions for selling a stake in ITA Airway. The conditions were set with the aim of facilitating a full divestment and stated that another airline should have a majority share in the airline.
Additionally, a letter of intent between the government of Italy and Lufthansa was signed in the first month of this year. However, financial details on the discussion have not been revealed, meaning that it is yet unknown how much Lufthansa will pay for the share.
While the move has been welcomed, it has been noted that even if the deal gets signed before the end of this month, it would not be fully effective before summer. This is because the deal needs approval by various authorities, including here the Commission of the European Union, which consistently approves aid for airlines facing losses due to different reasons – the main one being the COVID pandemic.
