ITA Airways: new proposals today
Challenge between Msc-Lufthansa and Certares fund, no decision made option is standing
The deadline for submitting bids for the takeover of air carrier ITA Airways expires today, August 22: by 11:59 pm the two interested consortia Msc-Lufthansa and the Certares fund (with carriers Delta Airlines and Air France) will send in their proposals to take over the flag airline wholly owned by the Ministry of Economy and Finance (MEF).
Msc-Lufthansa's bid, the one favored for weeks, is expected to be submitted with few adjustments from the July 5 offer: it called for investing 850 million euros to take over 80 percent of ITA Airways, leaving 20 percent in public hands. The Certares fund, on the other hand, would be enhancing its offer, while other news would concern Delta Air Lines' willingness to enter directly into the Italian airline's shareholding structure (not as a mere business partner).
Weighing on the privatization process is the Draghi government crisis and the September 25 election unknown. The fear is that the new chapter will be short-lived. The third option also remains up in the air: that of nothing. Failure to privatize would force the company to revise its business plan by eliminating fleet expansion and blocking further hiring. ITA Airways could find itself having to ask the Italian government for additional liquidity, facing infringement proceedings for illegal state aid.
On the same topic see also the article published by AVIONEWS.
AVIONEWS - World Aeronautical Press Agency