MSC Group, Lufthansa partner in bid for Italy's ITA Airways
MILAN (AP) — The parent group of MSC Cruises is partnering with Lufthansa in a bid for a majority stake in Italy’s ITA Airways, the company created from the ashes of former Italian flagship airline Alitalia.
MSC Group, which runs cruise ships, said in a statement late Monday that the deal would leverage synergies in both passenger and cargo, and that Lufthansa has already shown interest in the deal.
The companies have requested that the Italian government, which currently controls ITA Airways, grants a 90-day period for exclusive talks and due diligence. Lufthansa said it would use the 90-day period to “explore all possible options for cooperation, including a possible equity investment.”
ITA Airways has been looking for an industrial partner, and a successful conclusion to the MSC-Lufthansa operation could secure the future for the airline that succeeds long-struggling Alitalia.
ITA, or Italy Air Transport, officially launched last October after bankrupt flag carrier Alitalia landed its final flight, ending a 74-year business history that a series of financial crises had marred in recent years.
ITA has 52 planes that it says will grow to 105 and is pointing to next-generation aircraft that use sustainable, alternative fuel sources.
The company launched with 2,800 employees — 70% of them from Alitalia — and said it expects to increase the size of its workforce to 5,750 by 2025.
