The airline had been established in September 1990 and started operations in 1993. It was majority-owned by the Volante company, itself controlled by Niki Lauda, former world motor racing champion, while the remaining shares were with Gruppo Ventaglio. On 31 March 2003, Gruppo Ventaglio purchased Volante's share and integrated Lauda Air Italy with Livingston under the parent company Livingston Aviation Group. Livingston was established on 13 January 2003 and started operations in May 2003.
The Lauda Air Italy fleet consisted of the following aircraft: