EasyJet makes approach for takeover of Alitalia

EasyJet has approached Alitalia along with partners about a possible takeover of the Italian airline, betting an expansion in the Mediterranean country’s travel market is worth a tie-up with the notoriously unprofitable carrier once it is restructured.

Luton, England-based EasyJet, which is Europe’s second-biggest low-cost airline, said Tuesday it has submitted a “revised expression of interest” for a restructured Alitalia. The operator is acting within a consortium following a move last year to acquire certain assets owned by the Italian airline.

Alitalia, which is on state support and searching for a rescuer, was declared insolvent nearly a year ago and has been in talks with a number of foreign investors interested in acquiring parts of its business. The state extended the deadline for bids until later this month and agreed to pump an additional 300 million euros ($370 million) into the airline through a bridge loan to keep it afloat.

Deutsche Lufthansa and Cerberus Capital Management are also among the entities that have reportedly shown interest in the airline that operates in Europe’s fourth-largest economy.

This is the second time in a decade that Alitalia has sought to attract an international partner after filing for bankruptcy.

“There is no certainty at this stage that any transaction will proceed and EasyJet will provide a further update in due course if and when appropriate,” the U.K. company said.

A takeover of Alitalia would come on top of EasyJet’s successful bid for defunct Air Berlin’s operations at Berlin Tegel Airport.

With that acquisition, the carrier’s fleet will surpass 300 single-aisle Airbus aircraft and the number of passengers is expected to rise to 90 million in 2018.