The privatisation of Alitalia should finally proceed in the new year, with the airline’s board due to recommend a buyer for the Italian government’s half share in the carrier today.
The protracted sell-off, which has lasted more than a year and broken repeated deadlines, has come down to a straight fight between Air France-KLM and Italy’s second-biggest carrier Air One.
The pair submitted supposedly final bids on December 6 with Lufthansa, which had been touted as a possible buyer, saying it was not interested.
Air France-KLM is the most likely winner, but has insisted on trade union support for its takeover and union leaders have threatened walk outs if they are not consulted. The French government has offered its Italian counterpart a share in the enlarged airline if Air France succeeds.
Air One appears set to win only if Air France pulls out, although the idea of keeping Alitalia in domestic hands has considerable support in Italy. Air One holds about one-third of the domestic air market.