On Friday, Lufthansa sought to reassure investors about ITA’s financial health by sharing details of its plans to acquire a 41% stake in the Italian airline. This move comes after receiving approval from the EU to proceed with the acquisition.
Despite concerns about ITA’s financial future, Lufthansa has set a two-year timeline to evaluate the airline’s financial situation before considering a full acquisition. CEO Carsten Spohr expressed confidence in the economic viability of the acquisition and believes that cost improvements can be achieved for ITA.
Spohr downplayed concerns about ITA’s leasing debt and mentioned in an interview with Italian media on Thursday that Lufthansa could potentially acquire a 90% stake in ITA by next year. The details of the concessions made by Lufthansa as part of the approval process are still being examined.
Lufthansa has been working hard to distance itself from the troubled history of its predecessor, Alitalia, which used up an estimated $10.8 billion of state funds in its final 14 years of operation. By acquiring a stake in ITA, Lufthansa hopes to tap into Italy’s growing tourism market and expand its own operations in Europe.
