ITA Airways to be added to Lufthansa Group

[Andrew]

An agreement has just been announced, subject to regulatory approval: ITA, the successor to Alitialia as Italy's flagship airline, will become part of the Lufthansa Group, like Austrian Airlines and Swiss. Eventually it would be part of the Star Alliance.

ANSA article in Italian

Lufthansa news release

 

[braindoc]

Initially, Lufthansa will buy a 41% stake in ITA Airways for €325 million and will take over the running of the airline. I think that eventually they can buy up to 90%. Italy also agreed to invest another €250 million in the airline.

The big question is whether the Italian government will stand back and really let Lufthansa do what needs to be done to make a profit.