German airline Lufthansa signs deal to buy stake in Italy's ITA Airways
German airline Lufthansa on Thursday signed a deal with the Italian government for a minority share in the long-struggling ITA Airways, formerly Alitalia.
Lufthansa's industrial plan calls for revenues of 2.5 billion euros (USD 2.68 billion) this year, growing to 4.1 billion euros in 2027, the Italian Finance Ministry said in a statement. No financial terms were disclosed.
The cashflow will allow ITA airlines to expand its fleet from 71 aircraft to 94 in the next four years, the statement said. The airline also foresees new hires to expand the workforce to 5,500.
Under the strategy, Rome's Fiumicino airport will become one of the Lufthansa Group's hubs, as ITA Airways focuses on long-range flights. Lufthansa CEO Carsten Spohr also identified Milan, Italy's business and finance hub, as having potential for growth.
The deal must be approved by EU competition authorities.
ITA Airways and its Alitalia predecessor have long been searching for an industrial partner as the Italian airlin