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Lufthansa Readies $590 Million Quote for Alitalia Assets– Skift

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With a due date for binding quotes for insolvent Alitalia closing in, an Italian paper reported Monday that German carrier Lufthansa is preparing a 500-million-euro ($590 million) use that would add Italian assets to those it is already picking up from Air Berlin.

Bidders have up until 6 p.m. (1600 GMT) to send binding deals for the provider, which fell under personal bankruptcy last May after its main stakeholder, Etihad airlines, stated it would not extend additional financing. So far, no airline has actually openly validated its objective to bid.The Italian everyday Corriere della Sera says Lufthansa is preparing a 500 million-euro ($590 million) bid for large parts of Alitalia, consisting of the fleet, pilots, air team and air slots.Citing three unknown sources, the daily stated that Lufthansa’s strategy requires cutting 6,000 jobs and lowering the airline’s brief-and medium-haul routes, which have actually suffered under the pressure from inexpensive airlines.Alitalia declined to comment.Lufthansa recently reached an offer to buy parts of the insolvent carrier Air Berlin. Both Air Berlin and Alitalia have actually been< a href = https://skift.com/2017/07/27/etihad-swings-to-1-9-billion-loss-as-investment-strategy-crumbles-and-revenue-falls/ > managed by Gulf airline company Etihad, which cut off funding to both.The Italian federal government has extended 600 million euros in swing loan, plus another 300 million euros recently to keep the airline company operating through next summer.Once the bids are accepted, the government has offered bidders up until completion of April to tweak and improve the deal, followed by a period of review by European antitrust authorities that can last 4 to 6 months.The federal government tender gives preference to bidders seeking to buy the carrier intact, with the primary goal being to prevent a fire-sale of assets to numerous bidders. It likewise allows the possibility to isolate the aviation departments, comprising some 8,000 staff members consisting of pilots and flight attendants, from ground crews and handling, which consist of 3,600 workers.This post was from The Associated Press and was lawfully licensed through the NewsCred publisher network.

Please direct all licensing concerns to.The Skift Daily newsletter puts you ahead of everyone about the future of travel, subscribe.Photo Credit: An Alitalia airplane touting its unfortunate partnership with Etihad on February 17, 2015. The Italian everyday Corriere della Sera says Lufthansa is

preparing a 500 million-euro($590 million) quote for big parts of bankrupt Italian provider

Alitalia. Alitalia

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