Investing.com — Shares in Lufthansa Group (ETR:) edged greater on Thursday after the German airline’s chief govt stated, in an interview with Italian every day Corriere della Sera, that the service would contemplate elevating its stake in Italy’s ITA Airways to 90%, ranging from early subsequent yr.
Carsten Spohr was talking after his firm received approval from European Union antitrust authorities on Wednesday to purchase 41% of state-backed ITA for 325 million euros.
The deal offers Lufthansa a stronger foothold in the important thing southern European market and bolsters its try and offset an uptick in prices with elevated scale. Spohr additionally stated the transfer will grant Lufthansa higher entry to routes to Africa and Latin America.
Anticipated to shut within the fourth quarter of 2024, the transaction will make Italy Lufthansa’s fifth house market, trailing Germany and U.S. by way of market income measurement.
Beneath the settlement with the EU, Lufthansa and ITA will even cede some Italian short-haul flights to 1 or two of their friends. The deal is not going to be finalized till the rivals — accepted by EU officers — have begun working these routes.
