Italian Government Extends ITA Airways Takeover Talk Deadline

Italian authorities today confirmed the extension of a deadline for exclusive talks with a consortium over a majority stake in ITA Airways. The deadline has now been extended to October 31st.

Foreign interest

Last month, the Italian government noted that it had given exclusivity over the next stage of negotiations to buy an ITA stake to a consortium involving New York investment outfit Certares, Air France-KLM, and Delta Air Lines. This notion is the favored choice over a consortium involving Swiss-Italian shipping enterprise MSC and Lufthansa, which had previously been gaining steam.

Italy’s Finance Ministry stated the following at the time:

“After exclusive talks, a binding agreement will be signed only if the outcome will be fully satisfactory for the public shareholder.”

It has since been revealed that the Centares-led consortium is willing to offer €350 million ($344 million) for a 50% stake plus one share of Italy’s national carrier. Reuters adds that the offer could see capital boost of approximately £600 million, which would be in place on a to-be-announced date after the agreement is finalized.

Air France-KLM and Delta Air Lines are no strangers to partnering up. The two SkyTeam members have worked closely over the years, including on the transatlantic joint venture with Virgin Atlantic. So, enhancing their presence together across Europe would be a natural step for the operators.

The airline’s management is looking for investors. Photo: Vincenzo Pace | Simple Flying

National initiatives

Nonetheless, there could be plenty of twists along the way. Notably, Brothers of Italy party leader Giorgia Meloni, who is expected to be named Italy’s prime minister following the country’s recent general election, is keen on keeping a flag carrier. Thus, she has asked the outgoing office to halt the sale as the new government enters the fold in the middle of next month.

ITA Airways has had a strong start since it commenced operations last October. It gave Italy’s aviation industry a new lease of life following Alitalia’s ever-lasting financial issues. The Ministry of Economy and Finance currently oversees the company, which has had a busy summer of route launches and aircraft arrivals.

The Airbus A350 recently joined the carrier’s facilities. Additionally, a fleet of A220 aircraft are set to join the carrier’s existing two units. Additionally, new routes to the likes of Delhi are set to start before the year is over.

ITA currently holds six Airbus A350s. Photo: Vincenzo Pace | Simple Flying

Looking ahead

Overall, it’s not a surprise that international players are determined to get their hands on ITA. With a fresh setup and all the right systems in place, it would be a fantastic asset for investors. Yet, based on the Alitalia saga, we can expect the process to be long-drawn.

Simple Flying reached out to ITA for comment on the takeover reports. We will update the article with any further announcements from the airline.

What are your thoughts about Italy extending the deadline for the ITA Airways takeover? What do you make of the overall prospects of the airline? Let us know what you think of the carrier and its plans in the comment section.

Source: Reuters