Italy starts bidding process for Alitalia

MILAN: Alitalia went on the auction block on Wednesday, as Italy kicked off the process of finding a buyer to save the money-losing flag carrier.

In a document signed by government-appointed commissioners, Alitalia said offers from single companies or consortia had to be presented by June 5. Bids could be to buy the whole company, restructure it, or acquire assets and contracts.

Alitalia was put under special administration earlier this month for the second time in less than a decade after workers rejected its latest rescue plan.

Rome has ruled out re-nationalising Alitalia, once a symbol of Italy’s post-war economic boom, which is struggling to compete at home against low-cost carriers and high speed trains. It has not invested sufficiently in higher-margin long-haul routes to revive profits. The government appointed three commissioners to assess whether Alitalia can be restructured or liquidated, and has given them six months to come up with a plan. Rome also threw the airline a short-term lifeline with a bridge loan of 600 million euros to see it through the process.

As of February 28, the airline had debts of around 3 billion euros, liabilities of 2.3 billion euros and assets of 921 million euros. Alitalia’s balance sheet will be scrutinised over the summer by the three commissioners, who have promised to devise a new industrial plan by July. — Reuters