Lufthansa ready to invest up to 200m euros in Alitalia: source

[MILAN] German carrier Lufthansa is ready to invest up to 200 million euros (S$303.7 million) in struggling Italian airline Alitalia, a source close to the matter said on Thursday.

Confirming reports in two Italian dailies, the source said Lufthansa had written to Italy's industry ministry and Italian railways Ferrovie dello Stato on Tuesday saying it was ready to take a stake in Alitalia.

Italy has been struggling to see through a rescue of its loss-making flagship carrier.

The industry ministry has extended to Nov 21 a deadline for binding bids after an Oct 15 deadline passed without an agreement among potential rescuers, which so far comprise state-owned Ferrovie dello Stato, US carrier Delta Air Lines and infrastructure group Atlantia.

Lufthansa is ready to stump up between 150 million euros and 200 million euros, although the letter does not contain a precise figure, the source said.

"We are not commenting on this" a Lufthansa spokesman said.

Corriere della Sera reported on its website Lufthansa's planned investment amounted to 170-200 million euros while la Repubblica daily said 150 million euros.

At the top of the range, Lufthansa's investment would be twice as much what Delta has committed to contributing to the Alitalia rescue.

REUTERS