ITA Airways, the reborn Italian national carrier after the collapse of Alitalia, may now be closer than ever to privatization. This is good news for the Italian government, which has wanted to offload its majority stake in the airline for quite some time. According to Corriere della Sera, the government’s Ministry of Economy and Finance is expected to take up serious bids soon.

What happens now?

The date for all interested parties to submit an expression of interest has already passed, paving the way for the bidding process to commence, Corriere della Sera wrote. Three parties have expressed interest in buying ITA Airways- Lufthansa-MSC Group, Indigo partners, and US-based investor Certares.

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While there is no confirmation from official sources, Simple Flying noted that ITA’s fellow SkyTeam members Delta Air Lines and Air France-KLM might be involved in the deal backed by one of the two investors. In any case, now that Lufthansa and MSC Group aren’t the only interested parties, Italian authorities will undertake a bidding process. Before that, all three bidders will gain access to the airline’s financials.

ITA A350 roll out livery
The Italian government will start the bidding process soon. Photo: ITA Airways

Sequence of events

Following a comprehensive restructuring of debt-ridden Alitalia during the pandemic, the Italian government formed ITA Airways late last year. The new airline first took to the skies in October 2021 with mainly domestic routes, followed by its first long-haul service a month later. While ITA Airways was still very much a loss-making airline well into 2022, there was significant interest in purchasing the carrier.

At the turn of the year, rumors began emerging of Lufthansa looking to acquire a majority stake in ITA Airways, with the Italian government reduced to a minority shareholder. However, a major surprise came in early February when ITA formally acknowledged the German carrier’s interest, albeit in partnership with the world’s largest container shipping line- the MSC Group.

Lufthansa and the MSC Group asked the Italian authorities for a 90-day period of exclusivity to come up with an offer. As time passed, it became increasingly apparent that Lufthansa would end up with ITA Airways, but there was another twist in the story. As mentioned earlier, two more parties submitted an expression of interest, thereby washing away prospects of an easy win for the German carrier. Less than a month ago, the government appointed Italian investment bank Equita and law firm Gianni & Origoni as advisors for the sale.

ITA Airways new livery
ITA holds access to crucial slots and routes in Italy, explaining the major interest in the newly formed airline. Photo: Getty Images

Looking ahead

It will be interesting to see who ends up with a majority stake in ITA Airways. It is difficult to predict the winner as all three parties seem to have ambitious plans for the airline and the financial backing to materialize them. Whichever way it goes, the Italian government is sure to come out as the clear winner in the deal as it finally offloads the national carrier.

What do you make of ITA Airways’ sale? According to you, which party will win the bidding process? Please, let us know your thoughts in the comments.

Source : Corriere della Sera