ITA Airways is structurally a cost-competitive airline with no legacy to its predecessor Alitalia and should be profitable from 2025 under Lufthansa’s wings. The Italian carrier will help Lufthansa to become even more international and less dependent on its home markets, which is key if Lufthansa wants to maintain its global competitive position. Lufthansa is confident that ITA Airways will be profitable in 2025.
That was the message of Lufthansa CEO Carsten Spohr and Chief Financial Officer Remco Steenbergen during a briefing for analysts and media on the acquisition of ITA Airways, which was announced on Thursday.
The Italian state will invest €250 million as non-refundable equity as part of its earlier announced €1.35 billion total support to ITA that has been approved by the European Commission earlier. Lufthansa Group is set to take a 41 percent share through a direct equity investment of €325 million. It has an option without obligation to acquire 49 percent in 2025 and another on the remaining 10 percent but only if certain conditions and targets on profitability are met. Spohr was unwilling to confirm that the price for the second option is also €325 million and that of the third option €80 million, which would bring the total acquisition price to €830 million. The acquisition will be funded by Lufthansa’s own cash.
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