EU Commission Approves Lufthansa Group’s Integration of ITA Airways

First learned that Lufthansa planned to take a minority stake in the Italian flag carrier ITA Airways back in 2021.

The agreement between Deutsche Lufthansa AG, ITA Airways, and the Italian Ministry of Economy and Finance (MEF) was subject to regulation, though that final hurdle has been cleared.

“The approval from Brussels is excellent news for ITA Airways and Lufthansa and especially for all passengers flying to and from Italy,” said Carsten Spohr, CEO of Deutsche Lufthansa AG. “We look forward to welcoming ITA Airways and its outstanding employees as a new member of our airline family very soon. The decision is also a clear signal for strong air traffic in Europe, which can successfully assert itself in global competition.”

Let’s delve into the details of what this means for passengers and the airlines themselves.

ITA To Merge With Lufthansa Group

The main change that will come from Lufthansa Group’s 41% minority stake in ITA Airways is that the carrier will join Austrian Airlines, Brussels Airlines, Lufthansa, and SWISS and become the fifth airline of the Lufthansa Group (excluding Lufthansa subsidiary, Eurowings). Eventually, Lufthansa Group should control ITA.

This means ITA will have to give up its status as a SkyTeam member airline to join its fellow Lufthansa Group airlines as a member of Star Alliance.

Once the deal is officially signed off, passengers should be able to benefit from the merger almost immediately. Benefits include being able to book 1-ticket itineraries across each of the 5 airlines, now including ITA Airways, and Rome’s Leonardo da Vinci–Fiumicino Airport becoming a Star Alliance hub.

Details concerning the elite status and miles of ITA Airways’ Volare program are yet to be released. However, the stated goal is for ITA Volare members to be able to earn and redeem Miles & More miles on the first day after closing, adopting the program of the Lufthansa Group like the other member airlines.

Given ITA Airways’ status as a quasi-start-up airline, joining an airline group giant like Lufthansa Group is a strong business move — especially given the miserable success rate of Italian flag carriers.

The cost to Lufthansa rings in at a cool €325 million (~$350.7 million) by way of capital increase. As part of the deal, Italy’s MEF will also chip into the pot with €250 million (~$269.8 million). The deal is expected close in the fourth quarter of 2024.

The deal didn’t come without concessions, though. These include transferring slots at Milan-Linate Airport (LIN) to a competitor in short-haul traffic, letting a competitor take over routes on which Lufthansa and ITA currently are competitors. Moreover, connecting flights from Rome to hubs of European competitors will also guarantee competition on long-haul routes between Rome and North America.

Final Thoughts

ITA Airways joining the Lufthansa Group means big changes for the airline itself as well as the European airline industry in general.

Watch this space for more updates.