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Alitalia lurches toward new ownership

 

Alitalia again appears close to getting a new owner, but who that will be is still wrapped in confusion, claims and denials. Italian Industry Minister Carlo Calenda says it will all be clearer later today, Jan. 15.

Over the weekend, on a televised talk show, Calenda said that there are three remaining bidders, and that he will meet with the bankruptcy commissioners Monday to get details. But at least one of the offers may be in doubt, as AirFrance/KLM, named by Calenda as a joint bidder with EasyJet, has denied that it is bidding.

That leaves Lufthansa and Cerberus Capital Group, a U.S. financial company that once owned Chrysler, still in the field—although it is possible that EasyJet may still have a bid on its own. The airline has been in bankruptcy administration since last year when staff members rejected yet another restructuring, and 49% owner Etihad Airways cut off funding.

Any bid will result in a much smaller airline, but still likely to carry the Alitalia name, for Italian political reasons. The government must sign off on the final deal, and an election is coming up March 4th. Calenda says he expects a deal before then, even though it may involve layoffs of as much as 25% of staff.

An EasyJet bid would likely not include Alitalia's long-distance routes to North America and other non-European destinations. Lufthansa over the years has become the operator of 'flag' airlines of several countries, including Austrian Airlines, Swiss Airlines and Brussels Airlines. It might plan the same path for Alitalia.

The best part of every trip is realizing that it has upset your expectations

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UPDATE: As of late afternoon, there is no definitive word. Calenda is still certain a deal can be reached by the March 4 election date, but the leading bidder, Lufthansa, has warned that there needs to be a commitment to a very slimmed down airline before it will begin serious negotiations, and that is the outcome that most Italian politicians hope to avoid.

The best part of every trip is realizing that it has upset your expectations

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