Italy reaches deal with Lufthansa over sale of stake in ITA

Italy has reached a deal with German flag carrier Lufthansa on the sale of a stake in ITA Airways, the Italian government announced on Monday.

The deal still needs to be cleared by the the European Commission.

What else do we know about the deal with Lufthansa?

Rome and Lufthansa had been locked into over a year of tough negotiations on the price and terms of the deal.

Italian media reported that the deal faced a delay last week when Lufthansa requested a discount on the of €10 million ($10.65 million) on the €325 million purchase price of a 49% stake in ITA.

The German airline had pointed to ITA's expected drop in value in the last quarter of 2024 as the reason for the request for a discount.

Italian Finance Minister Ginacarlo Giorgetti said last week that there had been no change to the original agreement.

"The economic conditions envisaged have not changed with respect to the agreement already signed," his office said in a statement.

The European Commission set a series of conditions for the sale in June, including the requirement to cede take-off and landing rights to competitors. 

The latest sale comes after Lufthansa first bought a 41% stake in ITA in May 2023

Lufthansa had no immediate comment.

ITA emerged out of failed national carrier Alitalia

ITA was formed in 2020 following the restructuring of national carrier Alitalia, which had faced substantial economic woes.

The firm employs just under 4,900 people.

In July, the EU Commission said that "ITA's long-term sustainability as a stand-alone carrier would have remained highly uncertain absent the transaction."

Last month, Lufthansa CEO Carsten Spohr warned of further reductions in flight schedules in Germany due to high airport fees.

sdi/lo (AFP, dpa)