ITA Airways secures funds for the purchase of first owned plane, boosting financial credibilty

Published on March 1, 2024

ITA Airways has successfully secured financing through a €80 million private placement bond issue for the acquisition of its inaugural owned aircraft, an Airbus A330-900. The transaction was completed with the assistance of Castlelake, a prominent global alternative investment firm renowned for its expertise in aviation asset investment, financing, and management spanning over 18 years.

The Airbus A330-900 represents a cutting-edge addition to ITA Airways’ fleet, characterized by its lightweight construction, low noise emissions, and superior fuel efficiency. Compared to its predecessors, this new-generation aircraft boasts a remarkable 25% reduction in fuel consumption and CO2 emissions per seat.

This strategic financing endeavor supplements the Company’s growth trajectory, aligning with its expansion plans for both fleet and network operations. In addition to this private placement bond issue, ITA Airways has also secured a €90 million loan facilitated by a consortium of Italian banks, further bolstered by a SACE guarantee, to support its ongoing development initiatives.

“We are very pleased to have concluded these important transactions, which are in line with ITA Airways’
strategy of flanking shareholder equity with a balanced contribution of debt capital,” said Antonino Turicchi,
Chairman of ITA Airways. “The access to financial instruments was possible thanks to an increasing
credibility with banks and investors which was acquired through the positive performance recorded in 2023.
This marks a fundamental step in the development path outlined in the Industrial Plan, which aims to bring
the Company back to producing profits soon, possibly ahead of the Plan itself.”

In 2024, ITA Airways is poised to maintain its strategic course by engaging with various financial entities to replicate additional asset-backed financing operations, as outlined in its Industrial Plan. These initiatives aim to secure coverage of up to 80% of the acquisition cost for state-of-the-art aircraft.

The financial sector’s keen interest in such endeavors stems from the growing demand for new-generation aircraft, renowned for their exceptional fuel efficiency, reduced operational expenses, and minimized emissions. This trend aligns with the global push towards sustainability, facilitating a substantial decrease in carbon footprint.

By the conclusion of its 2023-2027 Strategic Plan, ITA Airways targets a fleet composition comprising 90% environmentally friendly aircraft. These aircraft are anticipated to consume 25% less fuel and emit 25% less CO₂, positioning ITA Airways as a frontrunner in sustainable aviation and the greenest carrier in Europe.