ITA Airways CEO mum on 2 privatization bids submitted to Italian government

Two dueling bids are in for ITA Airways but CEO Fabio Lazzerini is quiet on what direction he sees the Italian government going with the privatization of the airline. A consortium of Lufthansa and MSC Global, a shipping conglomerate, have offered E800-850m for roughly an 80% stake in the airline, while U.S. private equity firm Certares has offered E550-600m for an undisclosed stake. Certares would partner with Air France and Delta Air Lines if their bid is accepted. Both parties submitted their bids to the Italian government on July 5.“Both parties want to build on our business plan,” Lazzerini said of the two offers at the Farnborough Air Show in the UK on Tuesday. But he declined to say anything further on the bidding process, and instead deferred to the Italian government. The government is reported to favor the Lufthansa and MSC offer as it would provide better “economic, strategic and social prospects” for the airline and country. However, a political crisis in Italy that could result in the resignation of the prime minister on Wednesday, July 20, could affect the process. The bidding carries big stakes for all four airlines involved. Italy is Europe’s third largest aviation market and, while ITA lacks a dominant marketshare, it does have key hubs and lucrative slots in both Milan and Rome. The airline’s business plan calls for expanding its Rome Fiumicino hub into an intercontinental transit point rather than a destination for most travelers.<br/>