Tag: Benetton

Italian Airline Alitalia’s Rescue in Doubt as Atlantia Backtracks

November 19, 2019 / WIL BALDWIN

MILAN, Nov 19 (Reuters) – Italian infrastructure group Atlantia said on Tuesday it was not ready to join a consortium led by Italian railway group Ferrovie dello Stato to rescue loss-making carrier Alitalia, casting a shadow on the entire project.

After months of negotiations and with just one day left before a deadline expires, the group controlled by the Benetton family said that the conditions did not exist yet for it to join a consortium working on Alitalia.

Atlantia added, however, it remained available to engage in negotiations to seek for an industrial partner for the carrier.

A deadline to present a binding offer for Alitalia expires on Thursday, after being postponed several times.

Loss-making Alitalia has been run by special administrators since May 2017 and talks led by Ferrovie have been going on for a year without a deal.

The carrier, which is burning through its cash reserves, is expected to finish its money at the end of this year.

Ferrovie and Atlantia have been in talks with both U.S. carrier Delta Air Lines Inc and, recently, with German airline Lufthansa.

Delta said it was ready to invest 100 million euros ($111 million) in the Italian carrier but sources had said it did not agree with Ferrovie and Atlantia over the development of the Italian carrier’s long-haul business.

On the other hand, Lufthansa said it was prepared to set up a commercial partnership with the Italian carrier but did not want to take a stake in the group before it has gone through a complete restructuring.

“We will not invest in current Alitalia, but we are interested being a commercial partner,” said Lufthansa CEO Carsten Spohr at an event in Berlin on Tuesday.

Italian daily La Repubblica on Tuesday said the airline could be nationalized for some years before being sold.

Analysts calculate that Italian taxpayers have spent more than 9 billion euros to support Alitalia, which has undergone two previous failed rescue attempts.

($1 = 0.9028 euros)

(Reporting by Francesca Landini; Additional reporting by Ilona Wissenbach in Berlin; Editing by Lisa Shumaker)

Alitalia Set for Temporary Reprieve as Rescue Deadline Nears

October 14, 2019 / WIL BALDWIN

MILAN, Oct 14 (Reuters) – Alitalia is set to win a temporary lifeline on Tuesday, when its latest rescue deadline expires, with toll road operator Atlantia expected to give a conditional green light to hundreds of millions of euros of investment, according to two people close to the situation.

The future of the troubled Italian carrier remains in doubt with no binding offer and no clear business plan in sight but it should avoid an immediate liquidation after the expiry of the Oct. 15 deadline set by the industry ministry.

Atlantia, which is controlled by Benetton family, has been in talks since July over taking part in a government-orchestrated rescue of the airline, together with railway group Ferrovie dello Stato, the treasury and Delta Air Lines.

“Atlantia is expected to give its commitment to invest in Alitalia subject to several conditions,” one of the sources said. But issues that still cause concern range from potential antitrust problems, treatment of state aid under European Union rules, the cost of possible redundancies and the future of the carrier’s long-haul routes, the source said.

Oct. 15 is the latest in a series of deadlines set for Ferrovie and potential partners in a rescue for Alitalia, which has been under special administrators since May 2017 and needs new funds to continue flying.

The board of Atlantia, which runs Rome’s airports through its Aeroporti di Roma unit, is expected to approve a preliminary commitment to the Alitalia rescue on Tuesday, the sources said.

The rescue plans include potential investment of a total of around 1 billion euros in the carrier, which has cut costs under the special administrators but still burns cash and had only 310 million euros left at the end of September.

Atlantia is expected to invest some 300 million euros, depending on commitments from other partners.

A second source said more time was needed to iron out a complete business plan for Alitalia. Possible involvement by Delta Air Lines or Germany’s Lufthansa AG is still under discussion.

A third source said Atlantia, Ferrovie and other potential partners were under pressure from Italy’s Industry Ministry to present a binding bid and take control of the carrier which in the past two years has already received 900 million euros from the state to stay afloat.

Atlantia’s participation in the rescue was put in doubt this month when it wrote to the Industry ministry, urging a radical overhaul of the Alitalia plan if talks were to go ahead.

(Reporting by Francesca Landini, Stefano Bernabei, Giuseppe Fonte. Editing by Jane Merriman)

An Alitalia Airbus A320 takes off on September 26, 2017 from Toulouse-Blagnac airport in southwestern France. / AFP PHOTO / PASCAL PAVANI

Italian Government Asks Delta To Do The Right Thing

September 28, 2019 / WIL BALDWIN

The Italian government is begging U.S. major Delta Air Lines, Inc. (NYSE: DAL) to up the proposed acquisition of a 10% stake in Alitalia for $100 million to at least 15%, according to a report in Italian media.

Loss-making Alitalia has been seeking new investors for more than two years after going into administration in May 2017 after workers rejected a plan to cut jobs and salaries. Successive Italian governments have had to balance the carrier’s massive losses with the need to placate a heavily unionized workforce.

Click the link for the full story! https://finance.yahoo.com/news/italian-government-asks-delta-thing-205301072.html

Italy’s Salvini Prefers Transportation Group as Alitalia Partner

June 14, 2019 / WIL BALDWIN

MILAN, June 14 (Reuters) – Italy’s Deputy Prime Minister Matteo Salvini said on Friday an infrastructure or transportation group would be his preferred partner for troubled carrier Alitalia.

He added that he had reservations about a possible involvement of Lazio soccer club Chairman Claudio Lotito, who submitted an expression of interest for the airline this week.

Salvini’s comments put pressure on Industry Minister Luigi Di Maio, who is also the leader of the 5-Star Movement and has been handling the Alitalia crisis since the coalition government took office last year.

Di Maio has already had to postpone the deadline for the rescue of the carrier three times and the latest extension is due to expire on Saturday with every expectation it will have to be prolonged yet again as the search for a solution continues.

Italy’s state-owned railway group Ferrovie dello Stato is spearheading an effort to set up a consortium of investors to buy loss-making Alitalia, which is managed by administrators.

So far Ferrovie has secured the commitment of Delta Air Lines but it is struggling to find another partner who is willing to invest more than 300 million euros ($336 million) in Alitalia, which has a long history of financial woe.

Salvini, who is the head of coalition party League, said caution was needed in picking the right partners.

“We are talking about a company (Alitalia) with 11,000 employees, which has a potential U.S. partner (Delta) with dozens of billions in sales, that deals with infrastructure and airplanes,” Salvini told reporters in Milan.

“As far as I know, Lotito, at present, just lets lads play soccer,” he added.

One source with knowledge of the matter told Reuters that Ferrovie had recently had talks with infrastructure group Atlantia over Alitalia, but added that its involvement in any accord still lacked the necessary political green-light.

Di Maio and other 5-Star officials strongly criticised Atlantia over the deadly collapse of a motorway bridge managed by the group, which killed 43 people last August.

After the disaster the government said it would revoke Atlantia’s motorway concession, accusing the company of poor maintenance of its road network.

Atlantia has denied any wrongdoing and could join the Alitalia consortium as a way to mend its relationship with the government, sources had told Reuters. The company, which is controlled by the Benetton group, denied on Wednesday that it had reached a deal to join the rescue.

($1 = 0.8923 euros)

(Reporting by Francesca Piscioneri, Writing by Francesca Landini; Editing by Crispian Balmer)

Italian Airline Alitalia’s Rescue in Doubt as Atlantia Backtracks

Alitalia Set for Temporary Reprieve as Rescue Deadline Nears

Italian Government Asks Delta To Do The Right Thing

Italy’s Salvini Prefers Transportation Group as Alitalia Partner

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