Ryanair bids to buy failed Italian rival

RyANAIR has launched a bid for bankrupt rival Alitalia as it seeks to dominate in Italy.

The budget carrier said it had submitted an offer for the lossmaking carrier on Friday but added it would only pursue the move if Alitalia is restructured and the influence of the Italian government is removed.

In May, Alitalia filed to be put under special administration for the second time in less than a decade – starting a process that will lead to the airline being overhauled, sold or wound up. It is believed to have received around ten offers, according to Italian media reports . It is an attractive proposition for budget carriers because of the number of routes which Alitalia has.

Ryanair chief executive Michael O’Leary said: ‘ We are serious in indicting we have an interest in Alitalia. But we are also serious in that our interest in Alitalia is only if there is a significant restructuring so that Alitalia could reasonably be seen to operate on a profitable basis’

He added that there would need to be ‘an absence of Italian government interference’.

Ryanair is the largest carrier in Italy where it commands 28pc of the market share and also offers flight connections at Rome Fiumicino and Milan Bergamo.

The airline said it will be interested in buying a majority stake so its short-haul flights can link up with Alitalia’s long-haul net- work. Neil Sorahan, chief financial officer, said: ‘The long haul network will be very interesting in the point of view that we could provide the fleet – which is what we’ve always said.’

Alitalia filed for bankruptcy after workers rejected wage cuts linked to a £1.7bn rescue plan.

It had been hoped that Gulf carrier Etihad Airways, which owns 49pc of the firm, would help turn it into a five-star operator after it purchased a £1.5bn stake in 2014. But Alitalia lost its standing in Italy to Ryanair and EasyJet, while terrorism in Europe hurt tourism in the region.

The Italian government, which has invested more than £5.9bn into the airline over the last decade, also ruled out a bailout.

Meanwhile, Ryanair posted a 55pc jump in first-quarter profits after tax to £355m compared to the same period last year – thanks to the late timing of Easter.

Sales jumped 13pc to £1.7bn.