Lufthansa has reassured investors about the financial health of ITA Airways after the EU approved its acquisition of 41% of the Italian airline. ITA, which started operating three years ago, has been working to overcome the troubled history of Alitalia, which used up roughly $10.8 billion in state funds over its final 14 years.
Lufthansa plans to take two years to evaluate ITA’s financial situation before considering a complete takeover. CEO Carsten Spohr expressed optimism about the economic feasibility of the acquisition after more than a year of seeking approval from the European Commission. The details of the concessions made by Lufthansa are still being examined.
Spohr believes that ITA’s operating costs will continue to improve and is not overly concerned with the airline’s leasing debt. In interviews with Italian media, he mentioned that Lufthansa could potentially increase its stake in ITA to 90% as early as next year. The process of the acquisition and potential full takeover is still in progress, with both companies working towards a successful partnership in the future.