German airline Lufthansa took a new step on its way to acquiring Italian airline ETA.
According to Arabiya.net, Lufthansa signed a memorandum of understanding with the Italian Ministry of Finance to acquire part of Eta Airways, which is owned by the Italian government and previously bore the name Alitalia.
The agreement gives the German carrier exclusive negotiating rights to buy part of the troubled airline. Neither party mentioned the purchase price, according to information obtained by the German news agency.
Lufthansa aims to acquire a minority stake initially, but has said it would like to secure options to acquire the remaining shares when it joins the company.
The partners have given themselves 60 working days to conduct the exclusive negotiations, so an agreement in principle could be reached in April.
ETA was launched in October 2021 as a significantly smaller successor to Alitalia and debt-free, after Alitalia was forced to capitulate permanently despite the large government aid it received during the Corona crisis.
Since ETA was launched, its results were limited to recording losses and had to seek help from the state. The company employs about 4,000 people, owns 66 aircraft, and has a market share in Italy of approximately 20%.
The negotiations that took place recently with the American investment fund, Sertaris, ended without reaching a result, as the Italian government does not want to give ETA shares except to airlines only.
Lufthansa has been trying for years to find a foothold in the important Italian market located on the other side of the Alps, which attracts strong American business, and Lufthansa has repeatedly considered acquiring Alitalia.
The Italian state recently saved the airline, which was the official airline of the Pope of the Vatican, by pumping large sums of money, but Rome was unable to prevent the company's final bankruptcy during the Corona crisis.
Italy's Minister of Economy and Finance, Giancarlo Giorgetti, said recently that he hoped to strike a deal that could benefit the entire Italian economy.
Joint purchases, larger capacity utilization and harmonized flight schedules are seen as initial points for getting ETA into profit-making territory in a few years' time. ETA also owns the rights to the old Alitalia trademark and can use it again at a later time.
In recent years, Lufthansa has acquired many European airlines such as Swissair, Austrian Airlines and Brussels Airlines, the successor to the Belgian Sabena.
The latter company was acquired by Lufthansa in two phases, initially also with a minority stake. Another potential target is the Portuguese airline TAP.
