Hours before the midnight deadline to disclose the agreement to European regulators, Rome announced Monday evening that the Italian government and Lufthansa had reached an agreement to sell the German airline a stake in flag carrier ITA Airways.
To guarantee fair competition, the European Commission, the EU’s antitrust watchdog, must approve the agreement after tense negotiations between the parties over its terms and pricing.
According to Italian media, negotiations stagnated after the government rejected Lufthansa’s request for a 10 million euro discount on the 325 million euro ($346 million) purchase price of a 49 percent stake.
The sale comes after Lufthansa first bought a 41 percent stake in ITA in May 2023, also for 325 million euros, with the right to increase its stake to 100 percent in the medium term.
On Wednesday, Italian Economic Minister Giancarlo Giorgetti said the additional 49 percent stake would be sold for the same price.
“The economic conditions envisaged have not changed with respect to the agreement already signed,” his office said in a statement, referring to the first deal.
In order to preserve competition, Giorgetti also consented to the European Commission’s requests that a number of takeoff and landing slots be given to other airlines.
The German airline had justified its discount request by citing ITA’s anticipated decline in value in the final quarter of 2024.
However, last Tuesday AFP was informed by an Italian government source that “Italy is not selling off its airline”.
Unlike Lufthansa, Giorgetti declined to sign a set of commitments pertaining to the contract with Brussels last Monday due to a standoff over the sale price.
Giorgetti responded that “it would be opportune” when asked by reporters if he would consider holding a summit meeting with Carsten Spohr, the CEO of Lufthansa.
