German carrier Lufthansa on Monday said it had prepared an offer to buy the global, European and domestic business of Italy’s bankrupt carrier Alitalia.
A successful bid would add Italian assets to those Lufthansa is already picking up from Air Berlin, which went bust this summer.
Lufthansa did not provide detailed information, including how much the bid is worth and how much staff it would retain, but it appears that the offer covers only Alitalia’s aviation business and not ground and handling sides.
Lufthansa said in a statement that it wanted to establish a “NewAlitalia,” that it said “could develop long-term economic prospects.”
Monday was the last day for bidders to submit binding offers for the carrier, which fell into bankruptcy last May after its main stakeholder, Etihad airlines, said it would not extend additional financing. Etihad had also controlled Air Berlin — and likewise cut its financing.
$737M bid reported
The Italian daily Corriere della Sera reported earlier Monday that Lufthansa was preparing a 500 million-euro ($737 million Cdn) bid for large parts of Alitalia, including the fleet, pilots, air crew and air slots. The report said that the plan calls for cutting 6,000 jobs and reducing the airline’s short- and medium-haul routes, which have suffered under the pressure from low-cost airlines.
Alitalia declined to comment.
The Italian government has extended 600 million euros ($885 million) in bridge loans, plus another 300 million euros last week to keep the airline operating through next summer — the time expected to get the airline back on its feet under a new owner.
After the bids are submitted, the government has given bidders until the end of April to fine-tune and improve their offers, followed by a period of review by European antitrust authorities that can last four to six months.
The government tender gives preference to bidders seeking to buy the carrier intact, with the main goal being to avoid a fire-sale of assets to multiple bidders. It also allows the possibility to isolate the aviation departments, comprising some 8,000 employees including pilots and flight attendants, from ground crews and handling, which comprise 3,600 workers.