Kevin O'Toole/LONDON
Alitalia chairman Fausto Cereti is downplaying the chances for a quick privatisation of the Italian flag carrier, despite the announcement by its parent state-holding company, IRI, that it will cut its stake. The choice of a European alliance partner is promised within weeks, however.
Cereti says that, although IRI wants to reduce its holding - and Alitalia's management is keen to privatise - ultimately, the decision on taking the stake below 50%will have to be made by the Italian Government and then must win parliamentary approval.
Under the latest deal, IRI says that it is ready to cut its stake from 86.4% to 60%. The plan is that Alitalia commercial investors would be invited to take up new shares in 1998.That could replace the remaining L750 billion ($450 million) from the cash injection promised by IRI mid-year. Staff will also get a 20% stake.
Alitalia still continues to claim that the capital injection is a commercial transaction, setting up the carrier for sale, rather than state aid, as ruled by the European Commission (EC). Cereti confirms that the airline has launched a legal challenge against the EC ruling, which attached restrictions on the airline's growth in return for approving the "aid".
He admits that the objection is on a point of principle, in part designed to remove the stigma of a "state-aid" label and to "-send out a message" to staff, rather than a serious attempt to overturn the ruling. Any case is unlikely to be heard until after the EC restrictions run out in the year 2000, and Cereti says that the carrier believes that the conditions were largely fair.
Alitalia is itself being challenged, however, by airline competitors which claim that it has breached a restriction against leading on prices. Air One and Alpi Eagles are understood to have been joined by British Airways in a complaint to the EC, which may decide early in 1998 whether it will investigate.
Cereti also confirms that the carrier is still on schedule to reveal its European alliance partner this month, as earlier promised. Dutch flag carrier KLM is widely tipped as the likely winner, but intense talks are still taking place and Air France remains in the running.
Source: Flight International
