Lawyer Representing Group Refuses To Reveal Identities

There seems to be some renewed interest in Italy's struggling airline, Alitalia. The carrier issued a statement this week in response to an announcement by Antonio Baldassarre, attorney and former chairman of Italy's constitutional court, that he was advising an "unspecified group of entrepreneurs" interested in the airline.

"Alitalia confirms that a telephone communication has been received regarding such an interest accompanied by a request for a meeting to be held on a date to be defined in late August/early September," said the carrier.

The brief statement was made at the request of Italian Stock Exchange Controller, Consob.

Baldassarre said the interested group had not yet formed a consortium and taking over Alitalia was a "working hypothesis" right now. The group had more than five Italian and foreign members representing both financial and corporate interests and none of them participated in the failed auction, he said.  

He refused to identify them saying they would become known after their meeting with the company. No date for that meeting has been set yet.

The country tried unsuccessfully to auction the troubled carrier, but the sale collapsed in July when all bidders ultimately pulled out of contention, as ANN reported.

"You see this all the time with state-owned airlines," said Frost & Sullivan aviation consultant Diogenis Papiomytis. "Bidders are interested in the beginning because Alitalia has a strong brand name and a good network, but once you see its books and how it's run -- you can't get away from the unions and the political interventionism. All of this can deter any bidder from going forward."

Part of the problem lies in the conditions attached to the sale of the carrier. Any buyer would have to take on Alitalia's existing debt, which, as of December, was more than $1.3 billion. The carrier would also have to retain an Italian identity for at least the next eight years.

The Italian government still wants to sell its 49.9 percent stake in the airline and has given Alitalia's management the responsibility for locating a buyer.

FMI: www.alitalia.com, www.consob.it