FRANKFURT/ROM (dpa-AFX) - Lufthansa is expanding into Italy. After months of negotiations, the German MDax group has agreed with the Italian state to take over a minority stake of 41 percent in the airline Ita Airways, according to a statement to the stock exchange on Thursday. In return, Ita is to receive 325 million euros in equity from Lufthansa cash. The Italian government has also agreed to contribute another 250 million euros to the company, it said.

Options have also been agreed that will allow Lufthansa to acquire the remaining shares in ITA at a later date. The purchase price will be based on ITA Airways' business performance, the company said. The contracts should be concluded "shortly." Italian media had said on Monday that the state could hold a small stake of 5 to 10 percent for longer in order to continue to receive important first-hand information and exert influence.

The deal is subject to competition law reviews at national and European level. The EU competition watchdogs are likely to pay particular attention to whether supply monopolies are created at the airports in Rome and Milan.

Italia Trasporto Aereo (Ita), founded in 2020, took over the flight operations of its insolvent predecessor Alitalia in October 2021, but is not its legal successor. However, the new airline has secured takeoff and landing rights as well as the Alitalia brand. The legendary name could possibly soon be reactivated under the new corporate umbrella.

Lufthansa's Italophile strategy chief Jorg Eberhart, who already headed Air Dolomiti, the regional subsidiary active in northern Italy, is being discussed as the new head of Ita. He is to join another Lufthansa employee on Ita's five-member board of directors.

Last year, Ita Airways flew in a bottom-line loss of 486 million euros on revenues of nearly 1.6 billion euros. At the end of March, the company cited the aftermath of the Corona pandemic, increased fuel costs as a result of the Ukraine war and the poor euro-dollar exchange rate as reasons for the red figures.

Currently, Ita has 71 aircraft, according to the Finance Ministry, and is expected to increase revenue to 2.5 billion euros this year. By the end of 2027, it is targeting 94 aircraft and sales of 4.1 billion euros. The workforce is to increase from the current 4300 to more than 5500 employees.

Lufthansa CEO Carsten Spohr spoke of a win-win situation for Italy, Ita and his company. He wants to bring the lean Alitalia successor with its young fleet into the profit zone via higher utilization, cheaper purchasing and better flight coordination. He said, "As part of the Lufthansa Group family, Ita can develop into a sustainable and profitable airline connecting Italy with Europe and the world."

Following antitrust review, the partial takeover could be completed as early as this summer. Lufthansa then intends to take over operational management of what will then be the Group's fifth network airline.

Deutsche Lufthansa AG has already acquired the former state-owned airlines of neighboring Switzerland, Austria and Belgium and continued to operate them as independent brands. The Belgian Sabena successor Brussels Airlines had been taken over by Lufthansa in two stages, initially also starting with a minority. Rome is to become the sixth hub of Europe's highest-turnover airline group. Another possible takeover target is Portugal's Tap.

Lufthansa has wanted to gain a foothold beyond the Alps for many years. An attempt launched in 2009 under the name Lufthansa Italia came to an end in 2011. At present, the Group only attracts transfer passengers from rich northern Italy to the Munich hub with its regional subsidiary Air Dolomiti. Now, with Ita, Lufthansa is acquiring market share in an environment dominated by external low-cost carriers. The Italians are hoping for more economic security from the Crane Group and an upgrade of their airports./ceb/msw/DP/jha