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Lufthansa CEO positive about monetary health of ITA Airways

Lufthansa executives sought to assure financiers about ITA's monetary health on Friday after the German provider won EU approval this week to buy 41% of the Italian airline.

It took the German airline group more than a year to win European Commission approval for its purchase of a stake in the Italian carrier, eventually agreeing to a number of concessions for which the details are still being ironed out.

As part of the deal, Lufthansa will provide itself two years to evaluate ITA's financial health before promoting a full takeover.

We only need to execute if it is financially viable, even though you can hear my optimism and the optimism of the entire group that this will hold true, CEO Carsten Spohr informed a. conference call for financiers and experts.

Spohr said he expected ITA's organization costs to enhance. further, offered the efficiency of Rome's Fiumicino Airport, and. that the airline's renting debt was not a significant issue.

On Thursday, Spohr told Italian media that Lufthansa could. take a 90% stake in ITA as quickly as next year.

ITA's predecessor, Alitalia, was bailed out by taxpayers. repeatedly over years and dealt with possible takeovers from. various suitors, which did not materialise.

(source: Reuters)