MILAN (Reuters – Shipping company MSC and airline Lufthansa have expressed interest in purchasing a majority stake of Alitalia’s successor, ITA Airways. However, the airline has a history of unsuccessful privatisations as well as a 170 million euro ($194million), operating loss for 2021.

Over the past years, it is estimated that Alitalia has cost 10 billion euro ($11.4billion) in taxpayer money. These are some of the things that may appeal to ITA’s suitors.

ORGANIZATION STREAMLINED, REDUCED COSTS

ITA employs approximately 2,300 people, compared to Alitalia’s nearly 11,000 in 2019. It has a 52-aircraft fleet, which is less than Alitalia’s. A layoff plan funded by the government has been implemented for some 7,000 Alitalia employees.

ITA signed a labor contract less generously than Alitalia’s. This new airline does not own any maintenance or handling operations, but only an aircraft business.

After cancelling many domestic flights, ITA now operates fewer long-haul routes than Alitalia. The company plans to increase its long-haul operation, beginning in the summer.

MILAN CITY, AIRPORT

ITA controls the vast majority of Milan’s Linate airport take-off and landing rights. It is considered a crucial base for European flights. Linate has been a popular choice for business travelers, as Milan is Italy’s financial capital. The airport is located only 6.5 km from the centre of the city.

ROME FIUMICINO AIRPORT

The hub of ITA is an important point for international and domestic travel. Fiumicino is ideally located to develop routes into Africa, as Rome lies in the middle of the Mediterranean. Rome has high-speed trains that connect it to many other Italian cities.

ALITALIA BRAND

To prevent Alitalia from buying the Alitalia brand again, ITA acquired it last year for 90 millions euros. It is a well-known symbol of Italian design and style. Alitalia is the national airline of Pope Francis and top legislators of Italy. Last year, Prime Minister Mario Draghi joked that Alitalia was “a family affair even though it is a little expensive”.

CASH

ITA now has over 400 million euros. Its capital is partly due to a 700 million-euro capital injection from the Italian government.

($1 = 0.8776 euros)