Italy Extends Deadline For Alitalia Bids

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A government statement that was released last Friday, announced that Luigi Di Maio, the deputy prime minister of Italy, extended a deadline to submit the bids for Alitalia, the ailing carrier, to the 15th of June.

The decision comes after a request from Ferrovie dello Stato, the state railway group of Italy, which is considered as one of the firms who have said that they are willing to contribute to the rescue plan.

FS floated a bid to acquire Alitalia at the end of last October, however, it does not want to hold more than 30 percent in the airline.

Reportedly, the railway has been considering a potential partnership with Delta Airlines, which is based in Atlanta, USA, which is interested in holding a 15-percent stake.

According to Italian media reports, the Italian Treasury would take another 15 percent.

The current deadline had expired at the end of last month.

The government of Italy is arranging a rescue of the ailing firm in order to avoid mass layoffs and has lined up Ferrovie dello Stato, together with Delta, a U.S. carrier, as potential investors. However, it still needs one or more investor to contribute to a bid that is estimated to be worth approximately 1 billion euros (850.3 million pounds).

Alitalia, the Flagship carrier of Italy, has been run by administrators since 2017 after the workers turned down a previous rescue plan.