Talks regarding the privatisation of ITA Airways (AZ, Rome Fiumicino) have failed to yield results, with Italy’s Ministry of Economics and Finance abruptly ending an exclusivity period that began in late August to allow negotiations to get underway with a consortium comprising New York-based private equity fund Certares, Delta Air Lines and Air France-KLM. The ministry is the airline’s sole shareholder.
A ministry spokesperson told Reuters on October 31 that “exclusivity obligations granted on August 31 … end today.” In mid-October, ch-aviation reported that the consortium wanted to take a 51% stake in the airline, with the ministry retaining 49%. The consortium, in which Certares had emerged as a lead partner with Delta Air Lines and Air France-KLM becoming commercial and operational partners, was offering to pay the ministry EUR350 million euros (USD346 million) plus increase ITA Airways’ capitalisation by EUR600 million (USD593 million).
However, a subsequent change of government in Italy and leadership dispute at ITA Airways that saw executive chairman Alfredo Altavilla stripped of his powers and handed to CEO Fabio Lazzerini reportedly slowed and complicated negotiations with the consortium
On Monday, the ministry’s spokesperson said that they remained open to talking to potential buyers about the privatisation of ITA Airways. Before the exclusivity period began, Lufthansa (LH, Frankfurt Int’l) had joined forces with shipping company MSC to consider an offer to take over the Italian flag carrier.
