Delta Air Lines’ unlikely partnership with UK budget airline easyJet could see them invest up to $452 million to restructure ailing Italian airline Alitalia.
It would involve an injection of about 1 billion euros in capital by investors, Bloomberg reports, and a draft deal may be finalized by the end of this month.
A ‘new Alitalia’ would be set up following the current bankruptcy process and led by Italian rail operator Ferrovie dello Stato.
The Delta – easyJet pairing could get up to 40% in the new company with the remainder controlled by the rail operator and other entities run by the Italian government.
The Delta-easyJet alliance would likely see the two airlines split Alitalia’s route network with easyJet eying its short-haul European business and Delta interested in the transatlantic network.
The two airlines last week confirmed interest in partnering up to run the Italian carrier alongside Ferrovie.
EasyJet said discussions would continue on ‘forming a consortium to explore options.’
EasyJet would explore business agreements and code-sharing, and Delta may expand Alitalia’s flight network to and from North America, people familiar with the matter told Bloomberg.
