The new Italian government has lifted the exclusivity of negotiations with Certares/Air France-KLM/Delta on the partial privatization of Ita Airways. Prime Minister Meloni now wants negotiations to start with MSC/Lufthansa.

The previous government had awarded the consortium around Certares the contract. In addition, a so-called exclusivity was granted for the negotiation of the purchase contract. Since no breakthrough has been achieved since August 31, 2022, the Italian Ministry of Finance has lifted it again. This does not mean that the sale has finally collapsed, but that MSC/Lufthansa and Indigo Partners can start negotiations. Almost a second chance.

Ahead of the elections, Meloni hinted that she might consider halting the sale of Ita Airways altogether. Now the politician indicated that she is pushing for talks with MSC/Lufthansa. This turn of events comes as a surprise, because this consortium of bidders wants to give the state significantly less influence than Certares and its partners. Indigo Partners now also senses a “second chance” and is said to be in the starting blocks to convince the Italian government.

Different views within the government

Lufthansa and MSC had offered to acquire 80 percent together. The share of the crane airline would have been quite low at 20 percent. The Certares consortium wanted to be satisfied with a smaller share and veto rights for the state. MSC/Lufthansa continues to believe that only "genuine privatization" makes sense. A spokesman explained that they are still interested and are therefore monitoring the situation.

However, the situation is tricky because within the governing coalition, led by Giorgia Meloni, there are different views on the Ita Airways sale. Hardliners insist that the state should keep Alitalia's successor. Before the election, the prime minister said exactly that, but finance minister Giancarlo Giorgetti is urging the carrier to go to a strong partner. He also campaigned for MSC/Lufthansa before the new elections. According to reports, Meloni is said to have joined to the extent that she is also pushing for negotiations with the losing consortium. This does not mean, however, that this will be awarded the contract at the second attempt, because the lifting of the exclusivity of the talks with Certares also means that the sales process is completely open again.

Skyteam does not want to lose Italy, Star Alliance would like the market

Both Lufthansa and Air France-KLM as well as Delta also have strategic interests. If the crane and its ship partner were awarded the contract, Ita Airways would most likely switch to the Star Alliance. This would thus increase the presence on the Italian market in one fell swoop. This is exactly what the Skyteam members Delta and Air France-KLM want to prevent, because they would then lose Italy to the competing alliance around Lufthansa and United Airlines.

Indigo Partners, on the other hand, is pursuing a completely different strategy. It can be assumed that this interested party wants to make Ita Airways as profitable as possible. You can fall back on extensive know-how about the low-cost airlines in which you were or are involved. It is believed that the company will then resell the Italian carrier in installments or outright at a profit.

Ultimately, the developments of the coming weeks and months will show who Ita Airways will go to. The race seems wide open again and Certares, MSC/Lufthansa and Indigo Partners still have the plan B popular with hardliners within the government: no sale at all.