EasyJet and Delta confirm talks to rescue Alitalia

EasyJet has confirmed that it is looking at making a rescue bid for loss-making Alitalia together with Delta Air Lines and Italian state-controlled railways Ferrovie.

The three companies would form a partnership to run Alitalia, which went into special administration two years ago.

The Italian airline has borrowed €900 million (£789 million) from the state to stay afloat, but it has been looking for a new international partner ever since its former investor, Abu Dhabi-based Etihad, pulled the plug on further funding.

The loan was supposed to be repaid last December, but it has been extended until the end of June this year.

EasyJet and Delta are understood to be looking at taking a 40% stake in the airline, but easyJet stressed in a statement that there was no guarantee that the talks would lead to a deal.

Talks between the potential partners will focus on ‘the definition of the main aspects of the new Alitalia plan’, said Ferrovie in a statement.

Alitalia lost €154 million last year. A statement released by Italian Prime Minister Giuseppe Conte’s office said it stood ready to participate in establishing ‘a new Alitalia’ providing any new business plan is sustainable.

Both easyJet and Ryanair expressed an interest in buying Alitalia in June last year, but Ryanair backed away.

source: Travel Mole