(Bloomberg) -- Italy state-owned carrier ITA Airways approved a business plan shared with Deutsche Lufthansa AG, a further step toward selling a minority stake to the German airline. 

The plan envisages the development of ITA Airways’ fleet, network and strategic goals and it has been discussed by Italy’s Finance Minister Giancarlo Giorgetti, ITA Chairman Antonino Turicchi and Lufthansa’s Chief Executive Officer Carsten Spohr in a meeting in Rome on Thursday. The plan hasn’t been publicly disclosed yet. 

“Further progress has been made in the direction of the industrial partnership between the two carriers,” the Finance Ministry said in a separate note. 

Lufthansa aims to buy a minority stake in the successor of Italy’s failed flag carrier Alitalia, strengthening its position in the European airline market. The German carrier is seeking to buy as much as 40% of ITA, with the two parties still negotiating over its value. Daily Corriere della Sera reported that the stake could be worth between €200 million ($218 million) and €250 million.

ITA Airways lost €486 million in 2022, according to a statement. 

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