The long-awaited agreement to finalise the acquisition of the initial stake in ITA Airways by the Lufthansa Group is expected today, after a three 24-hour delay, due to a disagreement over the powers and authorities of the airline’s chief executive officer (CEO) and chairman.
While the carrier had planned to finalise the deal by 13 January, ongoing negotiations within the Italian government on the appointment of board members delayed the final agreement.
According to a report in the Italian newspaper Corriere Della Sera, which cites sources familiar with the matter, the Lufthansa group and the Italian Ministry of Economy and Finance (Ministero dell’Economia e delle Finanze – MEF) have not been able to agree on the powers and responsibilities of the new CEO of ITA Airways, who is appointed by the group, and the chairman, who is appointed by the MEF.
As a result, the finalisation of the acquisition of the German group’s initial stake in ITA Airways, 41% for €325 million, has been postponed, at least until today.
Previous reports in the Italian media indicated that Jörg Eberhart, former CEO of Air Dolomiti , an Italian-based regional carrier owned by the Lufthansa group, and now the group’s chief strategy officer, is to take over as CEO of ITA Airways.
Reuters, in a previous report, had pointed out that Lufthansa Group was supposed to complete the acquisition of 41% of the share capital on January 13, allowing the German company to finally start integrating the Italian airline into its multi-brand and multi-hub strategy, with Rome’s Leonardo da Vinci International Airport (FCO) becoming the sixth hub in the airline’s network.
Previous disagreements
The power dispute was not the only obstacle that the two parties, namely the Lufthansa group and MEF (the main owner of ITA Airways), had to overcome before they could complete the initial phase of the merger.
Last November, the two sides finally agreed that no changes would be made to the financial terms of the deal, including the €325 million price for the 41% stake in ITA Airways.
On 11 November, the MEF issued a statement that the two parties involved in the transaction had presented their remedies to the European Commission (EC) in an attempt to alleviate its competition concerns.
Lufthansa Group announced the merger agreement in May 2023 and notified the acquisition to the European Commission in November 2023. The Commission, which initially raised concerns about the competitive impact of the merger on intra-European and transatlantic flights to/from Italy, cleared the deal subject to certain competition-related conditions in July 2024.
New members to the Board
Meanwhile, in view of the agreement, Joerg Eberhart and Lorenza Maggio have today been appointed by the Italian Ministry of Economy and Finance (MEF) to the five-member Board of Directors of ITA Airways.
Joerg Eberhart (54) is responsible for the strategic development of the Lufthansa Group as “Head of Strategy & Organisational Development” from 2021. In this role, he was largely responsible for the involvement in ITA Airways. From 2014 to 2021, Joerg Eberhart was President and CEO of the Italian airline Air Dolomiti, which has also been part of the Lufthansa Group for the past 26 years. At the same time, Eberhart also headed Lufthansa CityLine GmbH in Munich as CEO from 2015 to 2019. Since 1 January 2019, he has been focusing on strategic projects in Italy in addition to his role at Air Dolomiti. He has been a lecturer in air traffic management at the University “Politecnico di Milano” for several years.
Lorenza Maggio (47) is Vice President Sales EMEA Lufthansa Group Airlines as of January 2024. In this role, she was responsible for all commercial and sales activities of Lufthansa Group Airlines passenger airlines in Europe (excluding domestic markets), the Middle East and Africa. She also managed and developed global sales programs and tools, as well as strategy and sustainability projects for corporate customers. In addition, he led the Lufthansa Group’s global sales communications. Previously, Lorenza Maggio was responsible for brand and customer strategy at Eurowings and was CEO of a subsidiary of the LSG Group. The Italian has worked internationally for the Lufthansa Group in various departments since 2001.
