(MENAFN) Italy and Lufthansa have reached an agreement whereby the German airline will purchase "a minority stake" in ITA Airways, the rebranded successor of the state-owned Alitalia, according to an announcement by the Italian government on Thursday.
This development is significant for Italy, which has invested over 13 billion euros ($13.9 billion) in various attempts to revive its national carrier.
Although the finance ministry statement did not specify the exact size of the stake, a government source revealed to AFP that Lufthansa plans to initially acquire a 41 percent share, with the potential to increase it in the medium term.
In mid-January, Lufthansa submitted an offer to acquire an initial minority stake of up to 40 percent in the Italian airline.
The agreement was finalized in Rome during a meeting between Lufthansa's Chief Executive, Carsten Spohr, and the Italian Finance Minister, Giancarlo Giorgetti.
Under the deal, Lufthansa will acquire a minority stake and has already reviewed ITA Airways' business plan, which projects a revenue growth of 2.5 billion euros this year and an estimated 4.1 billion euros by 2027, as stated by the finance ministry.
The ministry's statement also noted that these positive financial results will enable the growth and modernization of ITA Airways' fleet. By the end of 2027, the airline aims to have 94 planes, compared to the current fleet size of 71.
The partnership between Lufthansa and ITA Airways marks a new chapter for Italy's national airline, as it strives to revitalize its operations and achieve sustainable growth. The acquisition of a minority stake by Lufthansa brings potential expertise and resources to support ITA Airways' strategic goals.
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