German airline giant Lufthansa is targeting a potentially larger stake in Italy’s ITA Airways. Following the European Commission’s green light on their initial acquisition, Lufthansa’s CEO Carsten Spohr has expressed interest in raising its stake in ITA from the agreed-upon 41% to a commanding 90%. This possibility would emerge early next year, indicating Lufthansa’s long-term ambitions for the Italian carrier.

The initial deal, valued at 325 million euros, positions Lufthansa as a significant stakeholder in ITA. However, Spohr sees an opportunity for further investment. This move aligns with Lufthansa’s strategic goals of strengthening its presence in the crucial Southern European market. By integrating ITA’s operations, Lufthansa gains a foothold that could bolster its competitiveness and help offset rising operational costs. Additionally, Spohr highlights improved access to routes connecting Africa and Latin America, expanding Lufthansa’s global network reach.

The deal’s finalization is expected by the fourth quarter of 2024. Once complete, Italy will become Lufthansa’s fifth-largest revenue market, trailing only Germany and the United States. However, the European Union attached certain conditions to approve the acquisition. To ensure healthy competition within the market, Lufthansa and ITA will have to cede some of their short-haul flight operations in Italy to one or two competitors.

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While Lufthansa mulls over a potential increase in ownership, the Italian government has also voiced its stance. The Italian Economy Minister, Giancarlo Giorgetti, emphasized the government’s desire to retain some oversight in ITA to safeguard national interests. This sentiment is echoed by Spohr, who expressed his desire for continued government support during Lufthansa’s initial two years of involvement with ITA. This collaborative approach suggests a potential long-term partnership where both parties can benefit.

The future of ITA Airways under Lufthansa’s wing remains to be seen. If Lufthansa chooses to pursue the 90% stake, it would signify a significant shift in ownership and could lead to a deeper integration of the two airlines. This could result in a more robust and competitive entity, offering improved connectivity and services to passengers. However, questions linger regarding potential job implications and the overall impact on Italy’s aviation landscape.

Only time will tell how this strategic partnership unfolds. With Lufthansa and the Italian government outlining their priorities, negotiations and developments in the coming months will be crucial in shaping ITA Airways’ future.