The negotiations regarding the privatisation of ITA Airways have been extended until May 12 after several phone calls between the Italian Treasury and Lufthansa.
The two-month exclusivity period set by the memorandum of understanding signed by the Ministry of Economy and Finance on January 27 expired on April 24, and the parties are finalising some details of the agreement, which could be signed in the first week of May.
Lufthansa is expected to enter the capital of ITA Airways up to 40% for €200-250 million and will share the necessary capital for development. Once the company reaches operational break-even, Lufthansa may exercise its right to gain full control of ITA Airways between the second half of 2025 and the first half of 2026.
The Italian government hopes to value its stake and plans to achieve €4 billion in revenue by 2027 with a profitability similar to that of the Lufthansa Group. The deal, however, may face challenges from EU antitrust regulators, who are currently evaluating other aviation industry mergers and acquisitions.
This post was published on 25 April 2023 16:17
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