– Lufthansa is emerging as the only serious bidder in the Alitalia bidding war – one that is also strongly favored by the government
The company plans to add Rome (FCO) as their 5th main hub. $300 million for a controlling stake (or full ownership) seems like a deal of the decade to me!
The German group can pay between EUR250 and EUR300 million (USD294-352 million) depending on which assets it will be taking over. The offer only includes Alitalia’s aviation part, as Lufthansa is not interested in purchasing its ground handling unit. Lufthansa intends to trim down Alitalia’s fleet from the current 115 active aircraft to around ninety and focus on developing its long-haul operations out of Rome Fiumicino, which would become the group’s fifth primary hub after Frankfurt Int’l, Munich, Vienna and Zurich.
Il Messaggero reported that the government wants to close the deal by the end of January, at least two months before the parliamentary elections. While Lufthansa’s offer is satisfactory on many levels, the proposed employment cuts remain the biggest bone of contention. According to an online newspaper Lettera43, however, the German group is not in a hurry to conclude the negotiations and could extend them until a new government is formed after the elections.
The company is smart and plays the long game – just as with Air Berlin as it essentially wiggled itself out of one billion dollars by just waiting it out.
– Air Canada is taking part in the fare wars to China $421 Round Trip from San Diego to Shanghai
– WOW Air has Los Angeles to Tel Aviv on offer for $449 – just remember to bring no bags!
– without Frontier we would still pay $400 Round Trip to Miami from SFO – now it is just $190 without a carry-on
– good fares with Skyteam and Etihad from Chicago to Dar es Salaam for $671 Round Trip (easy to go on Safari or visit Zanzibar)