Lufthansa’s Optimism: Overcoming Alitalia’s Past with ITA Airways Acquisition

ITA Airways, the Italian airline that started operating three years ago, has been working to overcome the troubled history of Alitalia, which used up roughly $10.8 billion in state funds over its final 14 years. On Friday, Lufthansa reassured investors about ITA’s financial health after the EU approved the German carrier’s acquisition of 41% of the Italian airline.

Lufthansa plans to take two years to evaluate ITA’s financial situation before considering a complete takeover. CEO Carsten Spohr expressed optimism about the economic feasibility of the acquisition after more than a year of seeking approval from the European Commission. The details of the concessions made by Lufthansa are still being examined, but Spohr believes that ITA’s operating costs will continue to improve and is not overly concerned with the airline’s leasing debt.

Spohr mentioned in interviews with Italian media that Lufthansa could potentially increase its stake in ITA to 90% as early as next year. The process of the acquisition and potential full takeover is still in progress, with both companies working towards a successful partnership in the future. Despite concerns about Italy’s economic instability, Spohr believes that ITA is a valuable addition to Lufthansa’s portfolio and will help boost its revenue and profitability.