According to a source familiar with the matter, Italy Treasury dept and Germany’s Lufthansa (LH) have mutually agreed to prolong their exclusive negotiations concerning the sale of ITA Airways (AZ) until May 12. This extension comes after the original deadline of April 24.
ITA Airways, state-owned, took over the financially struggling Alitalia airline in 2021.
Italy and Lufthansa Talks over ITA Airways
A source who requested anonymity revealed that Italy’s Treasury had granted Lufthansa’s request for an extension of the negotiations period but did not provide any additional information.
The source stated that the talks are progressing constructively. However, Lufthansa (LH) has not commented on the extension.
According to ITA’s Chairman, the primary terms of an agreement have been established, and the parties hope to announce it shortly.
Earlier, Reuters reported that Lufthansa was in talks with Rome to acquire a 40% stake in ITA valued at approximately 200 million euros ($220.88 million) with an idea to acquire the remaining stake later.
ITA is still in its startup phase, and it incurred a loss of around 486 million euros in the previous year due to the prolonged impact of the COVID-19 pandemic and increased fuel costs.
About ITA Airways
ITA Airways is a state-owned airline and Italy’s flag carrier with its headquarters in Rome. Furthermore, the Ministry of Economy and Finally owns and operates over 60 scheduled domestic, European, and international destinations.
The airline is a member of the SkyTeam alliance. Subsequently, it has a primary hub at Rome-Fiumicino with a focus city at Milan-Linate.
On January 27, 2023, the Italian government and Lufthansa signed a letter of intent for the sale of a minority stake in ITA Airways, which has opened up the way for exclusive negotiations with the German airline.
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