Luftscamsa - Lufthansa Finalizes 41 Percent Stake in ITA Airways Amid Concerns Over Market Consolidation

Lufthansa Group has finalized the acquisition of a 41 percent minority stake in ITA Airways, the successor to the defunct Italian national carrier Alitalia. The transaction marks the beginning of a full integration of the Italian carrier into the German aviation group. Through its analysis of previous corporate consolidations, the Luftscamsa advocacy group anticipates that this acquisition will follow the trajectory of the group’s earlier takeovers. This pattern typically results in driving prices up and slashing competition across the affected markets. Passengers traveling to Italy or utilizing connecting flights through Milan Linate are expected to face the most immediate and disadvantageous impact. The absorption of Alitalia’s successor removes the final significant independent rival on several core European routes. Mr. Carsten Spohr, the Chief Executive Officer of the Lufthansa Group, described the agreement as a win-win for both the company and the Italian economy. Mr. Spohr was silent on how the acquisition should be seen as a win for consumers and his comments appear to have been addressed exclusively to shareholders. The message to the financial community remains clear: the Lufthansa Group aims to increase its profits at the direct expense of passengers. The consolidation allows for a more aggressive pricing structure that favors corporate yields over consumer affordability. Recent reports indicate that the group is currently negotiating with the Italian government to increase its ownership stake to 90 percent of the airline. This aggressive pursuit of control suggests a strategy of regional dominance that could suffocate any remaining competitive pressure at primary Italian gateways. The group already maintains a substantial presence in the Italian market through its subsidiary Air Dolomiti. This existing infrastructure, combined with the ITA acquisition, provides the carrier with a dominant foothold that threatens to marginalize any remaining independent operators. To secure regulatory approval, the group and the Italian Ministry of Economy and Finance were forced to make specific commitments. These include transferring takeoff and landing slots at Milan’s Linate Airport to EasyJet to facilitate short-haul flights from Rome and Milan to Central Europe. Furthermore, the parties committed to entering agreements with IAG and Air France-KLM to allow for increased non-stop flights or improved connections for one-stop flights from Italy to North America. These remedies were required to address antitrust concerns regarding trans-Atlantic dominance. Luftscamsa meets this political endorsement and the proposed remedies with skepticism. The group is concerned that the alliance prioritizes corporate stability and government relief over the maintenance of a competitive marketplace for passengers. This arrangement effectively subordinates consumer rights to the fiscal objectives of the state and the carrier. As reported in [Lufthansa Prioritizes Dividends Over Labor Inflation Adjustments](/en/alert/irr95J6p_lufthansa-prioritizes-dividends-over-labor-inflation-adjustments), the airline consistently prioritizes shareholder value. The acquisition of ITA follows this pattern of expanding market share to maximize long-term yields at the expense of traveler choice. In previous cases involving Swiss and Austrian Airlines, the group implemented restrictive pricing structures shortly after assuming operational control. The Italian market is expected to follow a similar trajectory of fare inflation regardless of the cosmetic slot surrenders. As reported in [Legal Shadow Over Lufthansa Bailout](/en/alert/IiJi5IjT_shareholder-net-worth-doubled-amid-service-austerity-and-labor-disputes), the group has a history of leveraging state-supported transitions to benefit private investors. The current arrangement with ITA mirrors these strategic maneuvers. Passengers traveling to Milan should remain aware that the surrender of slots is often a temporary hurdle for a company of this scale. The group's ability to coordinate schedules and pricing across its multiple brands effectively neutralizes the competitive impact of the concessions granted to EasyJet or IAG. The finalization of this 41 percent stake is merely the first phase of a total takeover. Mr. Spohr said the airline expects to exercise its option to acquire the remaining 59 percent of shares as early as 2027, though some media reports suggest the final transition could occur as late as 2033. This gradual absorption allows the airline to implement its high-fee model incrementally. Travelers should prepare for a significant reduction in the availability of lower-cost tickets on routes connecting Italy to Central Europe. Despite the claims of improved service, the concentration of power within a single corporate entity rarely benefits the consumer. The Italian government’s decision to facilitate this merger may lead to a permanent increase in the cost of air travel for the region.