Deutsche Lufthansa Stock: Strategic ITA Airways Acquisition Boosts European Presence

Deutsche Lufthansa Group has significantly strengthened its position in the European aviation market through a strategic acquisition of a 41% stake in ITA Airways, investing €325 million in the former Italian state airline. This landmark transaction establishes Italy as Lufthansa's second most important international market outside its existing home territories. The deal includes plans to integrate Rome-Fiumicino airport as the group's sixth hub while positioning Milan-Linate as a key metropolitan airport. The acquisition encompasses ITA Airways' current fleet of 99 aircraft and workforce of 5,000 employees, marking a substantial expansion of Lufthansa's operational capacity in Southern Europe.

Future Expansion Strategy

The agreement includes provisions for Lufthansa to increase its ownership stake in multiple phases, potentially reaching 90% and ultimately 100% ownership, with a predetermined total acquisition price of €829 million. The European Commission has approved the transaction following extensive competition requirements, which include the relinquishment of specific takeoff and landing slots in Rome and Milan to ensure fair market competition.