The Alitalia sale drama seems to be everlasting. In an effort to save its national airline, the Italian government has approved yet another loan, worth EUR400 million for Alitalia. In total, the Italian government has given the struggling airline almost EUR1.3 billion in loans. The airline struggles to stay afloat on a daily basis, because of strong competition from low-cost carriers such as easyJet and Ryanair, in addition to the drama surrounding its sale.
Since the Italian government expressed its desire to sell part of the airline, many multinational companies, including US-airline Delta and the Italian railway group Ferrovie dello Stato (FS), prepared bids for the crippled air carrier. However, the deadline for the bid has been extended countless times, as no company or group of companies could come to a final decision.
The deadline for bids is now fixed for the end of May 2020. Italian economics news-portal money.it mentioned that German airline giant Lufthansa was rumored to have interest in the airline, as the CEO of the German national carrier and a representative of the Italian government met.
If Lufthansa’s proposal is finalised, it is highly likely that the Italian railway group Ferrovie dello Stato (FS) would also join the talks. Nonetheless, Alitalia’s days remain numbered, as the airline loses money every day and struggles to stay afloat.