Lufthansa optimistic about ITA financial health

STORY: Lufthansa tried to reassure investors about ITA's financial health on Friday (July 5).

It comes after the German carrier won EU approval this week to buy 41% of the Italian airline.

ITA Airways took to the air three years ago and has tried to shake off the troubled legacy of Alitalia.

Its predecessor burned through an estimated $10.8 billion of state funds in its last 14 years.

Lufthansa will give itself two years to assess ITA's financial health before pushing for a full takeover.

CEO Carsten Spohr said Friday he was optimistic on the economic viability of the takeover.

It took Lufthansa more than a year to win European Commission approval for its purchase of a stake in the Italian carrier.

It eventually agreed to a number of concessions for which the details are still being studied.

Spohr said he expected ITA's business costs to improve further.

He also believes the airline's leasing debt was not a major concern.

On Thursday (July 4), he also told Italian media Lufthansa could take a 90% stake in ITA as soon as next year.