Italy opens bids for Unprofitable Alitalia

  Today, The Italian Ministry of the Economy and Finance opened the bidding process a shareholding of not less than 30.1% in Alitalia - Linee Aeree Italiane S.p.A. . Buyers must have minimum capital of 100 million euros ($131.73 million).

  The winning bidill be selected based on its economic offer and the ability of its industrial plan to "develop and relaunch" the ailing airline.

  In the statement, the government says "necessary and non-negotiable" terms for the sale are the protection of Alitalia's "national identity," and maintaining the "quality and quantity" of domestic service.

  Economy Minister Tommaso Padoa-Schioppa said earlier this month that he plans to conclude the process within six months.

  Alitalia has not made an operating profit in the last 5 years, mainly blamed on higher fuel costs, competition from low-cost carriers and the impact of a series of strikes.

  Alitalia - Linee Aeree Italiane is the national airline of Italy. Headquartered in Rome, it operates services to domestic and international destinations.

Source: Reuters