Lufthansa has formally made an offer to the Italian government to purchase a minority share in ITA Airways. The proposal also comes with a future purchase option for any outstanding shares.

The German airline conglomerate has submitted a proposal to Italy’s Ministry of Economy and Finance. They hope to seal the deal with an MoU so they may negotiate with the Italian government in private. This conglomerate comprises Austrian Airlines, Brussels Airlines, Eurowings, Lufthansa, and SWISS.

There would be discussions on the commercial and operational integration of ITA into the Lufthansa Airline Group and the ensuing synergies, as well as the form of a potential equity investment. The airline said it would be contingent on regulatory clearance if a deal is struck. According to the release, “outside of its home markets and the US,” Italy is Lufthansa Group’s most significant market.

Previously, a group including Delta Air Lines, Air France-KLM, and the investment firm Certares competed with Lufthansa and the shipping corporation MSC to acquire ITA Airways. The Italian government had initially favoured the second option. However, as the Delta-Air France-KLM-Certares consortium lost interest, Lufthansa was left as the only potential investor in the Italian carrier.

In October 2021, the then-Italian government agreed with the European Commission (EC) to spend up to €1.35 billion ($1.46 billion), giving birth to ITA Airways out of the ashes of Alitalia. When the total investment reached above €1.1 billion ($1.1 billion) in November 2022, there was little room for the government to help the airline stay afloat financially.

Local media sources stated that the worth of ITA Airways was projected to be between €450 and €480 million ($488 and $520 million) and that the Italian government was aiming to sign an MoU with Lufthansa to move the deal forward. In addition, in late December 2022, local legislators issued a resolution that would enable interested parties first to put in an offer for a minority stake in ITA Airways and that only airline organisations would be permitted to bid for the struggling Italian flag carrier.