Lufthansa Group advances merger talks with Italy's MEF for ITA Airways

The EC had previously noted that without this transaction, ITA Airways' ability to operate independently was uncertain. To address competition concerns, Lufthansa and MEF agreed on several remedies: allowing rival carriers non-stop flights between Rome and Milan as well as certain Central European airports; improving competitive conditions on transatlantic routes; and relinquishing slots at Milan Linate Airport.

Earlier reports suggested potential issues over pricing could jeopardize the merger. The MEF reportedly refused any reduction in price for its 41% stake in ITA Airways, valued at €325 million ($345.1 million), along with a planned capital injection of €250 million ($265.5 million).

As part of its multi-hub strategy, Lufthansa aims to integrate ITA Airways into its network model, adding Rome's Leonardo da Vinci–Fiumicino Airport as another hub alongside existing ones like Frankfurt and Munich.

Carsten Spohr, CEO of Lufthansa Group, mentioned during a Q3 earnings call that while they do not have access to ITA's financials due to EU regulations, "ITA Airways has been doing better" than expected according to their business plan.

Spohr concluded that once integrated, ITA would rank between Lufthansa’s best and worst airlines regarding profitability and margins.