Analysis: Italy's nationalists set to loosen grip on beloved airline with mooted Lufthansa deal

Italy's new right-wing government has shown it is prepared to put sound finances ahead of national pride by revamping plans to sell a stake in the successor of the country's repeatedly bailed-out flagship airline to Germany's Lufthansa. ITA Airways took to the air in 2021 and has had to struggle with the legacy of its loss-making predecessor Alitalia, that sucked in an estimated E10b of state funds in its last 14 years of life. Looking to forge ahead with a sale, the government passed a decree to sell an initial minority stake in ITA with the aim of speeding up the full divestment, a cabinet statement said. Lufthansa declined to comment on Rome's decision to offer an initial minority stake. ITA's CE Fabio Lazzerini confirmed that talks were ongoing with Lufthansa. Newly installed PM Giorgia Meloni has pledged to protect the national interest in strategic sectors, aiming to regain control of Telecom Italia's landline grid and preparing a trusteeship for a refinery in Sicily owned by Russia's Lukoil. Some of Italy's politicians consider ITA as the heir to cultural icon Alitalia, which they want to preserve. Industry Minister Adolfo Urso, a senior figure in Meloni's Brothers of Italy party, called the old Alitalia "the first showcase" of the country in the world. But economic reality has hit hard and, after years of failed bailout strategies, Meloni has little choice but to press ahead with sale plans.<br/>