Ita-Lufthansa agreement 'on ice'

Economy min' refused German carrier's price-cut request - report

By: ansa.it

Nov 05 2024
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Ita-Lufthansa agreement 'on ic

The agreement for a merger between ITA Airways and Lufthansa was reportedly put on ice during talks overnight between the German carrier and the Italian economy ministry (MEF), which owns the company that replaced the loss-making former flag-carrier Alitalia in 2021.
    Daily newspaper Corriere della Sera's website, Corriere.it, reportedly that Lufthansa asked to "revise downwards" the figure of the 829 million euros for the entire acquisition but the MEF said no.
    According to an agreement reached last year, the German airline was set to acquire from a 41% stake in ITA from MEF through a 325-million-euro capital increase, with the stake set to rise to 100% in a second phase - by 2033 - for a total investment of 829 million.
    The signed documentation on the agreement was meant to have been delivered to Brussels on Monday for the European Commission to assess it in view of final approval.
    The documents were signed by the Italian and German airlines and rival carriers easyJet, Air France and Iag - which are part of the slot agreement that the Commission laid down as a condition for its approval - but MEF's signature was missing, sources said.
    Lufthansa told ANSA on Tuesday that it "adheres to the 2023 agreement with the Italian Ministry of Economy and Finance to acquire a 41% stake in ITA Airways" and "has signed the necessary corrective measures package within the agreed deadline".