October 16, 2017
Lufthansa Offers €500 Million for Parts of Bankrupt Alitalia
Alitalia filed for bankruptcy earlier this year and was being sustained by several loans from the Italian government totaling €600 million. It’s frantically looking for a buyer so it can keep operating without government assistance. The Italian government had to give the failing airline another €300 million loan this past Friday and extended the deadline for prospective buyers to submit bids to April 30, 2018.
CNBC is reporting that Lufthansa has offered €500 million to buy a large chunk of bankrupt Alitalia’s assets. Lufthansa reportedly wants to buy aircraft, runway slots, and air crew. The German carrier also wants to reduce the number of Alitalia employees from 12,000 to 6,000 and reduce the number of medium and short-range flights.
Any bid will need regulatory approval, and it’s unclear whether the government will accept or approve such a deal. Lufthansa agreed to purchase €210 million worth of bankrupt Air Berlin’s assets just last week. Prospective buyers have until April 30, 2018 to submits bids. I’m a huge fan of Lufthansa, so I have no problem with the German airline taking over the European air market 🙂