18th Mar 2019 14:25
LONDON (Alliance News) - easyJet PLC on Monday said it withdrew from the process of forming a consortium for the potential acquisition of Italian flag carrier Alitalia Societa Aerea Italiana Spa.
The budget airline said it took this decision following discussions with Italy's Ferrovie dello Stato Italiane and US's Delta Air Lines, the other two potential members of the consortium.
Ferrovie dello Stato is a state-owned company that manages the Italian rail network, while Delta is an Atlanta, Georgia-based airline.
"easyJet remains committed to Italy, as a key market for the company, where it currently carries 18.5 million passengers every year and employs 1400 pilots and crew, all on local contracts," the budget airline said.
Back in February, easyJet confirmed talks for the potential acquisition of the beleaguered Italian airline.
At the end of October, easyJet submitted a proposal expressing interest in Alitalia after the Italian government was forced to rescue the company in 2017.
Alitalia went into government-controlled administration in 2017 and was kept afloat by Italian state loans worth EUR900 million. The Italian government was supposed to recoup the money by December 15, 2018 and wrap up bankruptcy procedures; however it decided to extend the loan to June 30, 2019.
Back in June 2018, both easyJet and fellow budget operator Ryanair Holdings PLC expresses interest in acquiring Alitalia, with the latter backing out following chaos caused by strikes and flights cancellations.
easyJet already flies to many destinations in Italy, including Rome, Milan and Naples.
easyjet shares were trading down 0.8% at 1,249.00 pence each.
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