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Lufthansa-ITA Airways deal delayed over leadership dispute

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Lufthansa-ITA Airways deal delayed over leadership dispute
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The Lufthansa Group's acquisition of a 41% stake in ITA Airways has been delayed due to a disagreement over the roles and responsibilities of the incoming CEO and President of the Italian airline. The delay was reported by Corriere Della Sera, citing sources familiar with the situation.

The disagreement is between Lufthansa Group and Italy's Ministry of Economy and Finance (MEF), which have not reached an agreement on the authority and responsibilities of ITA Airways' new CEO, appointed by Lufthansa, and its President, designated by MEF. As a result, the finalization of the deal has been postponed to at least January 15.

Jörg Eberhart, former CEO of Air Dolomiti and current Head of Strategy at Lufthansa Group, is expected to become ITA Airways' chief executive. Reuters had previously reported that the acquisition was supposed to close on January 13, allowing Lufthansa to integrate ITA into its multi-brand strategy with Rome Leonardo da Vinci International Airport as a hub.

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Previous disagreements between Lufthansa Group and MEF were resolved in November 2024 when both parties agreed that no changes would be made to the economic conditions of the deal. The European Commission (EC) was presented with remedy measures for competition concerns at that time.

On November 12, 2024, MEF highlighted its achievements under Prime Minister Georgia Meloni's government, including divesting ITA Airways without needing state aid. The EC concluded that ITA Airways is not an economic successor to Alitalia.

Lufthansa announced its merger agreement in May 2023 and notified the EC in November 2023. The transaction received approval from the EC with certain conditions related to competition in July 2024.

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