Lufthansa Bids For Parts Of Alitalia

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Alitalia planeImage copyright Getty Images

German airline Lufthansa has submitted an offer for parts of Italy's failing Alitalia, as the Monday deadline for offers approaches.

Lufthansa said it hoped to establish a "New Alitalia", but was only interested in parts of the existing business.

On Friday, the Italian government postponed the deadline for making a final decision over the sale from 4 November to April 2018.

It also announced a further €300m (£267m) in loans to the carrier.

Rome has already provided €600m of loans since May, but has now extended the repayment deadline to 30 September 2018, following the decision to delay completion of the sale. However, the cut-off for submitting bids remains 17:00 GMT on Monday.

Lufthansa did not reveal details of its offer, but in a statement said it was interested in "parts of the global network traffic and European and domestic point-to-point business".

Italian newspaper Corriere della Sera, referring to anonymous sources, said on Monday that the Lufthansa bid was worth €500m, but was likely to be rejected as the authorities in Rome wished to sell the airline's assets as a complete package.

Corriere della Serra reported Lufthansa was bidding for the planes, airport runway slots and air crew and was proposing to halve Alitalia's workforce of 12,000 employees as well as reducing its short- and medium-range flights.